European Natural Gas Futures Fall Nearly 2% Below €40/MWh as Hormuz Strait Shipping Halts

On Tuesday (May 6), European natural gas futures fell nearly 2% and broke below €40/MWh, retreating from the previous trading day's gains amid escalating tensions at the Strait of Hormuz. According to reports, shipping traffic has been disrupted following military escalation over the weekend, with vessels coming under fire. Iranian authorities warned that ships attempting to transit the waterway face potential attack.

LNG tankers from Qatar attempting to approach the strait were forced to turn back or halt progress. Since the outbreak of conflict in late February, the region has seen no LNG exports, disrupting approximately 20% of global LNG supply. Traders are closely monitoring U.S.-Iran peace negotiations scheduled for this week, though prospects remain uncertain as President Trump indicated the two-week ceasefire agreement expiring Wednesday is unlikely to be extended.