Dutch TTF gas jumps 2.9% as Iran keeps Strait of Hormuz restricted

Dutch natural gas futures climbed more than 2% on Monday after Iran signaled the Strait of Hormuz would not reopen quickly, keeping pressure on a route that is crucial for oil and LNG flows. The front-month Dutch TTF contract, Europe's benchmark, rose 2.9% to about 56.90 euros per megawatt-hour, while British wholesale gas added 2.6% to 139.50 pence per therm, reversing part of last week's sharp decline. The move followed mixed signals from Tehran and Washington. Iranian Foreign Minister Abbas Araghchi said over the weekend that Iran was close to an agreement with Oman on a shipping route through the strait, but he warned that any arrangement would not mean immediate access and ruled out direct talks with the United States for now. Tehran also published conditions for fully reopening the waterway, including an end to the U.S. naval blockade, sanctions relief, the release of frozen assets and compensation for wartime damage. Iran's Revolutionary Guards said they would keep the blockade in place "until the enemy accepts all our conditions." The renewed tension matters more for Europe because the region is still rebuilding gas inventories ahead of winter. European Union storage was around 56% of capacity in mid-August, below seasonal norms, while hot weather in southern Europe has lifted power demand and reduced the amount of gas available for storage injection. With LNG cargoes from the Middle East facing delays, European buyers are competing more directly with Asia for spot LNG (immediate-delivery liquefied natural gas) shipments, supporting prices. Oil also rose but gave up early gains. Brent crude settled near $83.98 a barrel, up 0.5%, and West Texas Intermediate gained 0.3% to $78.44 after both benchmarks had dropped more than 7% the previous week. Additional uncertainty came from reported attacks on regional energy infrastructure, including a fire at Saudi Aramco's Jazan refinery and tanker attacks reported by Abu Dhabi National Oil Co. Traders are now watching the Iran-Oman-U.S. diplomatic track for any sign that transit through Hormuz can resume more fully.

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Dutch TTF gas jumps 2.9% as Iran keeps Strait of Hormuz restricted - CoinPost Terminal