Overview
European gas prices moved higher on Friday as the situation surrounding Iran continued without clear progress and transit through the Strait of Hormuz remained heavily disrupted. Market participants priced in the persistent impact of the disruptions as geopolitical signals from both sides of the dispute reinforced expectations of continued friction.
Market data
At 09:50 GMT (05:50 ET), the benchmark Dutch front-month contract at the TTF hub was quoted at 46.580 euros per megawatt hour, according to ICE data.
Geopolitical developments
The political backdrop included a U.S. statement indicating the naval measures in the region will continue. U.S. President Donald Trump signaled that the U.S. naval blockade of Iran will remain, having earlier expressed hope that economic pressure will push Tehran towards a deal.
At the same time, Iran’s Supreme Leader, Mojtaba Khamenei, made a rare public statement on Thursday saying that Iran will maintain control over the Strait of Hormuz, and that Tehran will also safeguard its nuclear and missile interests.
Implications for markets
The combination of sustained disruptions to flows through a key chokepoint and political signals from both Washington and Tehran supported upward pressure on European gas benchmark prices on Friday. The market response reflected traders reacting to the ongoing uncertainty and to the continued constraints on transit through the Strait of Hormuz.
Bottom line
With no immediate sign of progress in the Iran-related tensions and maritime flows still heavily disrupted, European gas prices traded higher as of the reported ICE data timestamp.