European natural gas prices eased Monday after a 7% weekly surge, as a pullback in crude oil prompted profit-taking. Traders now wait on a Washington press conference detailing new sanctions on Iran, after Tehran warned it would halt all Persian Gulf energy exports if the pressure continues.
European natural gas prices slipped on Monday, pausing after logging a 7% weekly surge that pushed prices to their highest levels since March. A pullback in crude oil futures prompted tactical profit-taking across energy desks.
Dutch and UK gas hubs retreat from peaks
Benchmark Dutch front-month futures and British wholesale gas contracts each eased 0.8%, pulling back slightly from multi-month peaks. The retreat follows an aggressive multi-week breakout that carried European energy hubs to five-month highs.
Despite Monday's minor dip, trading desks say the underlying fundamental outlook for natural gas remains tightly constrained by persistent Middle East shipping disruptions and severe underground storage shortfalls across the continent.
The immediate catalyst behind the softer gas prices was a pullback in global oil benchmarks. Brent crude futures eased roughly 1.5% to trade near $91.80 a barrel on Monday, providing temporary relief after last week's 5% surge.
Washington escalates pressure on Tehran
Energy desks remain on high alert as Washington escalates its diplomatic and economic pressure against Iran. According to Investing.com, the U.S. threatened Iran with sanctions it described as "the greatest financial offensive ever marshalled," with plans to unveil the measures on Monday aimed at penalizing foreign trade partners doing business with Iran.
In response, Iranian officials warned they would completely halt all energy exports originating from the Persian Gulf if the economic pressure continues. Traders are now focused on a press conference scheduled for 2:00 p.m. ET by U.S. Treasury Secretary Scott Bessent, who is expected to outline the scope of the new measures.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
