European natural gas futures were up on Monday, reaching their highest levels in nearly six weeks, amid persistent uncertainty surrounding the Strait of Hormuz.
The front-month Dutch TTF contract gained 1.67% to 51.005 euros ($59.32) per megawatt hour, while the UK NBP front-month rose 1.65% to 125.70 British pence ($1.67) per therm.
On Sunday, US President Donald Trump reportedly told Axios over a phone call that "the clock is ticking" for Iran, while warning that the country was "going to get hit much harder" if the regime does not return with a better offer for the long-pending deal with the US.
Mohsen Rezaee, a top Iranian official, warned US forces that the "Sea of Oman could become your graveyard" if tensions in the region were to rise further, according to a report by The Hindustan Times.
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.
Analysts at ING once again reiterated their view that "the gas market is underpricing the scale of the supply impact from the Persian Gulf," as Asian buyers increasingly tap spot markets to make up for lost supplies and European gas storage remains depleted.
European natural gas inventories stood 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.