European and British wholesale natural gas futures rose on Thursday as traders monitored U.S.-Iran negotiations and potential implications for liquefied natural gas shipments through the Strait of Hormuz.
The benchmark Dutch front-month TTF contract increased 1.6% to €74.50 per megawatt-hour, moving higher after recently reaching its lowest level in almost three weeks.
In Britain, the equivalent NBP wholesale gas contract also gained 1.6%, reaching 185.85 pence per therm.
The moves came as U.S. and Iranian officials remained divided over conditions for an agreement, including issues related to the Strait of Hormuz.
U.S.-Iran Negotiations Remain in Focus
U.S. President Donald Trump said at the United Nations that he could “annihilate” Iran if an agreement was not reached, while also referring to negotiations between the two sides.
Iranian President Masoud Pezeshkian subsequently rejected Trump’s threat and said Iran would not surrender, while maintaining that Tehran remained open to diplomacy.
The negotiations have implications for energy markets because the Strait of Hormuz is an important transit route for energy shipments from the Persian Gulf.
Traders are monitoring the potential timing of any reopening of the waterway and the implications for LNG cargoes, including supplies originating in Qatar.
EU Gas Storage Stands at About 70%
European gas inventories also remained in focus ahead of the heating season.
Gas Infrastructure Europe data showed EU underground storage at 70.24% of capacity as of September 23, with approximately 794.84 TWh of gas in storage.
Storage facilities were continuing to receive injections, but inventory levels remained below those recorded at the same stage of the previous year.
The combination of storage levels, LNG supply conditions and geopolitical developments remained among the factors being assessed by European gas traders as the winter heating season approaches.
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