Key insights
- European gas prices rose due to colder weather and heightened US-Iran tensions impacting peace talks. Iran's seizure of ships in the Strait of Hormuz adds to geopolitical risk. While the direct impact on US equities is limited, rising energy prices in Europe could contribute to global inflationary pressures, indirectly affecting US markets.
Investing.com -- European wholesale gas prices increased on Thursday as colder weather forecasts and ongoing geopolitical tensions surrounding US-Iran peace talks weighed on market sentiment.
The benchmark Dutch front-month contract at the TTF hub rose 1.85 euros to 45.40 euros per megawatt hour, or 4.2% on the day.
Iran seized two ships in the Strait of Hormuz, tightening its control over the strategic waterway after US President Donald Trump announced he was indefinitely calling off attacks, with no indication of peace talks resuming.
The benchmark EU gas contract had dropped around 39% since reaching 74 euros per megawatt hour on March 19, driven by optimism about potential peace negotiations.
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