European gas jumps as Trump orders Iran blockade; supply fears deepen:
European natural gas futures leaped more than 9% to €47.8 per MMBtu on Monday after U.S. President Donald Trump ordered a maritime blockade on Iranian ports after talks with the Middle Eastern country failed.
The blockade, which is expected to begin on Monday, April 13, at 10 a.m. ET is the latest escalation in the U.S.-Iran conflict. Global energy supply will be further impeded due to this move.
The decision will apply to vessels of all nations traveling to or from Iranian ports and coastal areas, including those along the Arabian Gulf and Gulf of Oman. CENTCOM said the measures will be implemented impartially.
European natural gas rebounded on Monday from an over five-week low. The United States Natural Gas Fund (UNG) was up 1.7% to $10.95 at the time of writing, rebounding after three consecutive sessions of losses.
Middle Eastern gas exports typically go to Asia; however, if the disruption continues for a long time, Europe could be facing a shortage ahead of the next winter.
The LNG supply crunch has been ongoing for over a month, especially as liquefied natural gas shipments from the Gulf dried up following the closure of the Strait of Hormuz in March. At the same time, Qatar, which supplies 20% of the world's LNG, halted exports after missile strikes damaged its key facility.
Nations across Asia and Europe are now competing for alternative supplies from the U.S. and other producers at sharply higher prices. In response, some governments have begun rationing energy or reducing workweeks to conserve fuel.
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