Uncertainty over shipments through the Strait of Hormuz drove European natural gas prices higher. September futures at the TTF, the Netherlands-based natural gas trading hub with the continent’s highest trading volume, traded at €59.5 per megawatt-hour.
The contracts opened the day at around €56 and rose to as high as €60.5 during the session. At 17:10 TRT, the price stood at €59.5, compared with the previous close of €55.5.
Natural gas prices rose 8% from the previous close.
Security warning for the Strait of Hormuz
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the Strait of Hormuz would not be a safe transit route if the United States continued its current policy and naval blockade.
Hot weather and low inventories supported prices
A heat wave expected to affect Europe again this week is forecast to increase electricity demand. Natural gas storage facilities across the continent remain at historically low levels, also putting upward pressure on prices.