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19.08.202600:59:31UTC+00European Gas Rises Further as Supply Risks Mount

European natural gas prices climbed further above €64 per MWh on Wednesday, reaching their highest level since January 2023, as fears of a winter supply squeeze intensified amid stalled efforts to reopen the Strait of Hormuz. President Donald Trump stated that no negotiations with Iran are underway or planned and that the US naval blockade remains fully in place. He also asserted that the strait is open and functioning, contradicting Iran’s stance that the crucial shipping route will remain closed until Washington meets its conditions. Traffic through the waterway has largely ground to a halt, leaving Qatari LNG tankers stranded and delaying shipments to Europe. The resulting drop in gas inflows, combined with summer heatwaves that have driven up demand for gas-fired power generation for cooling, is slowing the usual seasonal buildup of gas inventories. Consequently, traders are increasingly worried that Europe may enter the winter heating season with inadequate reserves, sustaining upward pressure on gas prices.

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