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EMEA Natural Gas Update: Futures Rise Over 1% Amid Stalled US-Iran Negotiations

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European natural gas futures surged higher on Friday amid stalled US-Iran negotiations, alongside continued disruption to flows in the Strait of Hormuz.

Front-month Dutch TTF futures rose 1.26% to 62.200 euros ($72.18) per megawatt-hour, while UK NBP futures gained 1.50% to 153.500 British pence ($2.08) per therm.

The 60-day ceasefire between the US and Iran is set to end on Monday, with no end to the ongoing conflict in sight, despite reports early last week that the two sides had consented to extend the deadline with mediators, as reported by.

Meanwhile, traffic along the strategically crucial Strait, which accounted for one-fifth of global liquefied natural gas flows, has dropped to a trickle, with just eight vessels transiting on Sunday, according to data from ShipFinder.

Daniel Hynes, a senior commodity strategist at ANZ, noted that the return of LNG tankers transiting the waterway remained "elusive," with the US unwilling to relent on keeping it free from Iranian control.

European gas inventories stood below historic averages at 60.78%, compared to 73.31% 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 77.8%, according to the Swiss Federal Office of Energy.

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