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EMEA Natural Gas Update: Futures Advance as Iran Threatens Energy Assets

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European natural gas futures advanced on Monday as rising US-Iran tensions and prolonged disruptions at Qatar LNG raised concerns about tighter supplies ahead of the heating season.

Front-month Dutch TTF contracts advanced 2.34% to 73.64 euros ($85.62) per megawatt-hour, while UK NBP futures gained 2.65% to 183.550 British pence ($2.49) per therm.

Natural gas markets across Asia and Europe recorded strong gains last week as supply flows from Qatar showed no signs of restarting, with North Asian LNG prices topping $24 per million British thermal units, said Daniel Hynes, senior commodity strategist at ANZ Bank.

The prolonged disruption is raising the prospect of supply shortages across Asia and Europe during the coming heating season, Hynes said.

European Union gas inventories stood at 66.59% of capacity, down from 78.95% a year ago, with Germany at 54.16% and France at 73.41%, according to data from Gas Infrastructure Europe.

European natural gas prices climbed to their highest level in more than three and a half years as rising tensions between the US and Iran heightened concerns over Persian Gulf energy supplies, Trading Economics said.

Europe is nearing the end of its summer storage injection period, leaving the region exposed to tighter supply competition and price spikes during the colder months, Trading Economics said.

On Monday, Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned of possible strikes against US oil and gas companies operating in the Middle East in response to Washington's actions.

"American oil and gas companies across these waters and facilities share that exposure. Strike our assets and you get struck. We've already proven it. Ask the bases that are no longer viable," Ghalibaf said in a post on X.

On Monday, Iran's top security official Mohsen Rezaei said Tehran would declare a restricted zone near the Strait of Hormuz and introduce a new route for commercial vessels as agreed with Oman, according to an Al Jazeera report.

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