Oil & Energy
EMEA Natural Gas Update: Futures Rise Over 4% After Trump Hardens Stance on Iran
European natural gas futures were up on Wednesday, after US President Donald Trump reportedly signaled an extended blockade against Iran, while warning Tehran to "get smart soon" in a social media post.The front-month Dutch TTF contract was up 4.01% at 45.34 euros ($53.05) per megawatt hour, while the UK NBP was up 3.51% at 112.21 British pence ($1.52) per therm.Far from ending hostilities in the region, Trump has reportedly asked aides to prepare for an extended blockade against Iranian ports, to ramp up economic pressure against Tehran, according to a Wall Street Journal report, citing US officials familiar with the matter.In a Truth Social post on Wednesday, Trump warned that Iran "better get smart soon," as negotiations between the two sides remain stuck.The Strait of Hormuz, which accounts for one-fifth of global LNG flows, remained effectively closed for the ninth week running, with just five vessels passing through over the past 24 hours, according to the Hormuz Strait Monitor.On Tuesday, an LNG tanker managed to transit via the Strait for the first time in over two months, since the conflict began, according to a report by Bloomberg, citing ship tracking data.Daniel Hynes, a senior commodity strategist at ANZ, Europe still faces "challenges in refilling depleted gas storage ahead of next winter."He said regional gas storage has typically entered the heating season between 80% and 100% full over the past five years.This time, inventories sit at just 31.97% of capacity, according to Gas Infrastructure Europe, leaving the region with a steep refill challenge before next winter as costs climb and supply constraints persist.At the same time, weather forecasts tell of falling temperatures across Eastern and Southeastern Europe in the coming days, owing to a rare Arctic cold air mass intrusion.