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EMEA Natural Gas Update: Futures Down After Iran Proposes New Peace Plan to US

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European natural gas futures were down on Monday, reversing gains from earlier in the day, after Iran said that it had forwarded a new proposal to end the conflict with the US, via Pakistan.

The front-month Dutch TTF contract was down 2.69% at 48.815 euros ($56.87) per megawatt hour, while the UK NBP front-month was down 3.19% to 119.720 British pence ($1.60) per therm.

On Monday, Tehran reportedly submitted another 14-point proposal to a Pakistani mediator, who is set to deliver it to the US, according to Iran's state news agency, Tasnim, citing a source close to the Iranian negotiation team.

According to the source, the new proposal is focused on "negotiations to end the war and confidence-building measures by the American side."

This comes following US President Donald Trump's latest threat against the country, in which he reportedly said that "the clock is ticking" for Tehran, while warning that the country was "going to get hit much harder" if the regime does not return with a better offer, during a phone interview with Axios on Sunday.

Meanwhile, the strategically crucial Strait of Hormuz remained effectively closed for the 12th week running, with just 3 vessels transiting through over the past 24 hours, according to the Hormuz Strait Monitor.

This comes at a critical juncture for Europe, with natural gas inventories at 36.33% of capacity, down from 44.13% during the same period a year ago, according to data from Gas Infrastructure Europe.

Inventories were also significantly below the five-year average for this period, at 49.5%, according to the Swiss Federal Office of Energy, leaving the bloc in a tight position.

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