European benchmark natural gas prices surged on Monday following a weekend escalation in the Strait of Hormuz, with the August 2026 Dutch TTF futures contract climbing 3.35% to $59.51 per megawatt-hour in early Amsterdam trading.
The rally was triggered by Qatar's decision to halt all maritime activities amid renewed hostilities between the United States and Iran, with the Transport Ministry urging vessels to cease sailing until further notice. Benchmark contracts later extended gains, rising above 54 euros per megawatt-hour as ongoing mutual attacks in the Persian Gulf sustained a risk premium across energy markets. The disruption threatens to tighten global LNG supply as Europe races to refill storage sites ahead of winter.
Geopolitical risks remain elevated after U.S. President Donald Trump warned that American forces would strike Iranian power plants and bridges next week if Tehran does not agree to a deal, even as another round of U.S.-Iran talks took place on Tuesday.