European natural gas futures drifted higher in after-hours trading on Friday as a stalemate in negotiations between the US and Iran sustained concerns over further disruptions to energy flows from the Middle East.
The Dutch TTF front-month contract rose 0.201% to 48.85 euros ($56.29) per megawatt-hour, while the UK NBP front-month contract gained 0.102% to 118.05 pence ($1.58) per therm.
European gas prices were on track to post a weekly gain of more than 5%, supported by growing market concerns that tensions between Washington and Tehran could continue to strangle energy shipments through the Persian Gulf, Trading Economics said.
Iran warned on Friday of the risk of a broader conflict, with a senior official reportedly telling CNN that any agreement with Washington would require the release of $24 billion in frozen Iranian assets. The official also cautioned that the US would enter a "dark corridor" if it resumed military action. The comments underscored the lack of progress in negotiations, as both sides continued to issue conflicting statements on the status of talks.
Separately, Lebanese President Joseph Aoun accused Iran of using Lebanon as a "bargaining chip" in its confrontation with the US and Israel, adding to signs of mounting regional tensions.
"As a deal remains elusive, markets are increasingly worried that disruptions to energy shipments from the Persian Gulf could persist," Trading Economics said. "A prolonged disruption could intensify competition for LNG cargoes, fueling concerns in Europe as the region races to secure fuel this summer to refill storage facilities ahead of winter."
On the supply side, the Institute for Energy Economics and Financial Analysis said on Friday that EU LNG imports increased from all major suppliers between March and May 2026 compared with the same period a year earlier.
LNG imports from the US rose 5% year-on-year, while imports from Algeria increased 11%, Russia 25%, and Norway 84%, according to IEEFA data. The US accounted for 60% of the EU's LNG imports during the three-month period, up from 56% a year earlier.
The stronger inflow of LNG cargoes has helped bolster European supply, though traders remain focused on geopolitical risks and the pace of storage injections ahead of the winter heating season.
European gas storage levels stood at 41.25% of capacity, down from 49.89% during the same period last year, according to data from Gas Infrastructure Europe. Inventories also remained well below the five-year average of 55.4% for this time of year, data from the Swiss Federal Office of Energy showed.