-- European natural gas futures prices trimmed gains in after-hours trade on Monday after Iran again closed the Strait of Hormuz, reigniting concerns over global LNG supply flows.
The front-month Dutch TTF benchmark rose 2.775% to 39.845 euros per megawatt hour ($46.95), while UK NBP futures gained 2.286% to 99.33 British pence per therm ($1.34).
Earlier in the session, European gas prices had surged more than 6%, briefly pushing back well above 40 euros/MWh, with intraday spikes reaching as high as 11% in Asian trading, according to Trading Economics.
The volatility followed renewed tensions in the Middle East over the weekend, including Iran's brief reopening and subsequent reclosing of the Strait of Hormuz. The moves came after the US said it was maintaining its blockade measures on Iran and confirmed the seizure of an Iranian cargo vessel.
Iran also signaled it would not participate in a second round of peace talks, despite warnings from US President Donald Trump of potential renewed airstrikes.
Several LNG carriers loaded with Qatari cargoes were reported approaching the strait in recent days but were either turned back or forced to wait offshore. Since the escalation of the conflict in late February, no LNG exports have reportedly left the region, effectively removing supply equivalent to roughly 20% of global LNG flows from the market.
Despite the geopolitical disruption, European price gains remained partially capped. Europe continues to compete with Asia for LNG cargoes as it rebuilds inventories, but relatively subdued Asian demand has helped ease some pressure on European supply, the Wall Street Journal reported.
Storage rebuilding is ongoing ahead of winter. Data from Gas Infrastructure Europe shows EU gas storage levels rose to 30.20% of capacity over the weekend, still below the 36.5% recorded at the same point last year.
Weather models from Atmospheric G2 indicate Europe may see a brief cold spell later this week, though analysts expect no sustained cold pattern. The group said key atmospheric drivers are likely to weaken and then recover in early May, limiting the risk of prolonged cold conditions. However, disrupted weather patterns later in May could still trigger short-lived anomalies affecting regional demand.