Natural gas prices surged 8.6% on Monday after U.S. President Donald Trump announced a maritime blockade of Iranian ports following the collapse of negotiations between Washington and Tehran, accompanied by threats to "immediately eliminate" approaching Iranian military vessels, according to Al Jazeera.
The price for one-month delivery on the Netherlands-based TTF market, the primary benchmark for Europe, reached €47.66 per megawatt hour (MWh). During early trading sessions, prices reached a peak of €49.52 per MWh.
The Trump administration will begin blocking all maritime traffic entering and exiting Iranian ports starting Monday at 14:00 GMT. According to the United Kingdom Maritime Trade Operations (UKMTO), the restrictions will apply "without distinction" to ships engaging with Iranian ports and oil terminals, encompassing the entirety of the Iranian coastline, including its energy infrastructure.
The escalation follows a social media post from President Trump, in which he claimed that Iran’s Navy has been "completely obliterated" with 158 ships at the bottom of the sea. Trump warned that any Iranian ships approaching the blockade zone "will be immediately ELIMINATED," Al Jazeera reported, adding that while "fast attack ships" remain, they are not considered a significant threat.
Crude oil prices also moved higher. Brent crude, the European benchmark, rose 6.88% to $101.74 per barrel.
The market volatility follows a period of sharp declines. Last week, natural gas prices fell by more than 19% after a ceasefire was agreed upon between the U.S. and Iran. Although the two-week truce stipulated that Iran would open the Strait of Hormuz, vessel traffic has not increased in the strategic waterway since the ceasefire was announced, Al Jazeera reported.
The recent price drop coincided with the start of peace negotiations in Pakistan over the weekend. Those discussions ended without a resolution, triggering the current spike in energy costs.
