The price of gas in Europe has risen after Trump's rejection to the Iranian peace proposal

Dutch and British gas contract prices rose on Monday afternoon, following oil, after the United States rejected Iran’s response to a peace proposal. This ended any hope of an imminent end to the Iran War.

Intercontinental Exchange data shows that the benchmark Dutch front-month contract on the TTF hub increased by 5.3%, to 46.47 Euro per megawatt (MWh), by 1436 GMT.

The British contract was up 5.7% to 114.28 pence a therm. The U.S. President Donald Trump’s rapid rejection of Iran’s?response? to a U.S. Peace proposal has fuelled fears that the conflict would drag on and continue?to paralyse the shipping through the Strait of Hormuz.

BNP analysts stated in a note that the more the Strait of Hormuz is constrained, the greater the winter risk to European gas prices and electricity.

The European gas storage is at 35%, which is more than 12% lower than the average for the past five years. High summer temperatures, and a prolonged LNG disruption in Middle East, could hinder Europe's ability fill the storage to its target of 90% by November 1.

Fitch Ratings raised their TTF price predictions for 2026 and 2027.

The increased TTF gas assumption reflects the disruption in Qatari LNG flow through Hormuz. The European?gas markets will be tight until 2026, assuming the strait opens around July," said Fitch analysts. A second 'Qatari LNG' tanker is currently transiting the Strait of Hormuz, days after the first cargo did so under an agreement between Iran and Pakistan. This shows that certain cargoes can pass through the waterway. The Qatari LNG tanker Al Kharaitiyat, which departed Qatar's Ras Laffan on its way to Port Qasim, Pakistan, was spotted sailing towards the Strait of Hormuz at the weekend.

The benchmark contract on the European carbon markets was up almost 3%, at 77.34 euro per metric ton. (Reporting and editing by Nora Buli, Nina Chestney and David Goodman.)

(source: Reuters)