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EMEA Natural Gas Update: Futures Rally Over 2% After US Signals Indefinite Blockage Against Iran

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European natural gas futures edged higher on Friday after the US hinted at a prolonged blockade against Iran, along with the prospect of fresh sanctions against Tehran.

Front-month Dutch TTF rose by 2.11% to 61.670 euros ($71.23) per megawatt-hour, while UK NBP futures rallied 1.91% to 151.320 British pence ($2.05) per therm.

On Thursday, US Secretary of Defense Pete Hegseth said that the US can sustain a blockade against Iran "indefinitely," as talks between the two sides hit a stalemate, with no signs of progress.

Meanwhile, US Treasury Secretary Scott Bessent said that Washington was planning on imposing economic measures against Iran that have "never been seen" before, noting that it will be a combination of "economic isolation" and a continued blockade, with no goods moving in or out of Iranian ports, during an interview with Newsmax on Thursday.

Traffic along the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, held steady with 16 transits on Thursday, according to ShipFinder.

Daniel Hynes, senior commodity strategist at ANZ, highlighted intensifying competition between Europe and Asia for LNG supplies, noting that Indian importers had stepped up spot purchases even as European countries struggled to replenish depleted inventories.

European gas inventories stood at 59.92% of capacity, compared to 72.54% during the corresponding period a year ago, according to Gas Infrastructure Europe.

Inventories were also significantly below the five-year average for this period, at 76.8%, according to the Swiss Federal Office of Energy.

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