European natural gas prices surge more than 8% amid Hormuz closure tensions

European natural gas prices rose sharply Wednesday as tensions between the US and Iran persisted and markets saw no concrete progress toward fully reopening the Strait of Hormuz.

May-dated natural gas futures at the Dutch Title Transfer Facility (TTF), Europe’s benchmark gas trading hub, climbed more than 8% to €47.2 ($55.1) per megawatt-hour as of 1735GMT.

Markets were supported by the lack of clear progress in reducing tensions between Washington and Tehran, as well as uncertainty about when energy flows through the Strait of Hormuz could return to normal.

US media reports said Washington is considering increasing pressure on Iran, with a focus on limiting oil exports and restricting maritime traffic linked to Iranian ports. The approach is seen as a lower-risk but longer-term pressure tool compared with large-scale military operations.

Although a temporary ceasefire had earlier halted fighting between the sides, tensions in the region remain elevated and no lasting settlement has been reached.

The Strait of Hormuz, through which around 20% of global liquefied natural gas (LNG) trade passes, remains a key concern for energy markets.

Analysts said uncertainty about the waterway has intensified supply-security concerns in Europe, which remains heavily dependent on LNG imports, keeping prices above pre-war levels.