Now Reading: Gas and oil surge as Hormuz deal talks hit deadlock
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Gas and oil surge as Hormuz deal talks hit deadlock
European natural gas prices jumped over 10% on Monday as hopes for a quick reopening of the Strait of Hormuz faded. Dutch front-month futures rose to €61.24 per megawatt-hour. US crude held…
The Story in Brief
European natural gas prices jumped over 10% on Monday as hopes for a quick reopening of the Strait of Hormuz faded. Dutch front-month futures rose to €61.24 per megawatt-hour. US crude held near a one-week high, with Brent at $87.81 a barrel and WTI at $82.22. Trading remains volatile after US President Donald Trump demanded compensation from Iran for war deaths, complicating negotiations. Iran insists the strait will stay closed until the US lifts its naval blockade and sanctions. Iran’s foreign minister said no direct talks are happening with Washington. Europe’s gas storage sites are at their lowest seasonal level since 2009, barely 59% full.
Oil and gas markets are reacting to conflicting signals from Iran and the US. Iran’s foreign ministry said talks with Oman on alternate shipping lanes are nearly complete, but that does not mean the strait will reopen. Analysts say the prolonged uncertainty sets up intense competition between Europe and Asia for LNG supplies ahead of winter.
The Indian Opinion
Every new demand, compensation, sanctions removal, blockade end, makes a Hormuz deal look harder, not closer. The media cycle feeds a see-saw of hope and despair, but the hard numbers say Europe’s gas storage is at 59%, well below the 76% seasonal norm. Winter is three months away. The real test is not what Iran or Trump says next, but whether storage levels reach 74% by late October, as Citigroup projects. That single number will tell us if this crisis is real noise or just noise.
Sources (3): livemint.com, timesofindia.indiatimes.com, livemint.com (2)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
