European natural gas prices reached €53 per MWh on Tuesday. This rally marks a three-month high for the commodity. President Donald Trump ordered a blockade on Iranian ports and a new 20% security fee on cargo transiting the Strait of Hormuz.
The move disrupts shipping through a vital waterway that handles approximately 20% of the world’s liquefied natural gas (LNG) supply. This route is particularly critical for exports from Qatar. The renewed hostilities halt an LNG recovery that began after a June interim agreement between the US and Iran.
The blockade takes effect at 4:00 p.m. EDT on Tuesday. These measures tighten the global gas market as Europe attempts to refill storage before winter. The disruption places significant price pressure on regions dependent on energy imports.