European Gas Extends Surge

European natural gas prices climbed to around €52.8 per MWh on Tuesday, the highest in more than three months, after President Donald Trump ordered the resumption of a blockade on Iranian ports and declared a 20% security fee on cargo shipments through the Strait of Hormuz. The blockade is set to take effect at 4:00 p.m. EDT on Tuesday, dashing hopes for a near-term normalization of shipping activity through the waterway. LNG exports from the Middle East had only recently begun to recover, with Qatar ramping up production and shipments following the US-Iran interim agreement in June. However, the renewed hostilities have abruptly halted that recovery, raising concerns over fresh disruptions to LNG exports from the region. Such disruptions could tighten global gas supplies just as Europe is racing to refill storage facilities ahead of the next winter.