European gas prices increased following a bellicose statement from U.S. President Donald Trump regarding potential military action against Iran.
Gas Prices Increase in Europe
Benchmark gas contracts in Amsterdam (ICE Entawex Dutch TTF) reached 50.09 euros per MWh, a 5.4 percent increase, following a prior 7.2 percent rise.
Trading volumes were lower on Thursday as many market participants closed positions ahead of the upcoming Easter holidays in Europe. Gas prices had decreased by over 13 percent in the previous two days.
Trump’s Warning to Iran
U.S. President Donald Trump announced in a national address that the U.S. would “strongly attack Iran” within the next two to three weeks, aiming to return the country “to the Stone Age.”
Trump stated that Americans were close to achieving their main strategic objectives in Iran, asserting the operation would conclude “very quickly.” He threatened to “hit them (Iran) extremely hard” and revert them to “where they belong—the Stone Age.”
Trump noted that “talks are ongoing” and claimed a regime change had occurred in Iran, which he stated was not the operation’s objective. He warned that if no agreement is reached, the U.S. would “hit every Iranian power plant, probably simultaneously.”
Trump asserted the U.S. holds “all the cards, they have none.” He assessed that American forces achieved “rapid, decisive, and overwhelming” victories during the four-week “Epic Fury” operation.
Trump indicated that the Iranian navy has been destroyed, its air force is in ruins, and most of its leaders are dead.
Epic Fury and Natural Gas Prices
The conflict in the Middle East, ongoing since the end of February, has effectively cut off approximately 1/5 of global liquefied natural gas (LNG) supplies, driving prices in Europe and Asia to three-year highs in March.
While most gas from the Middle East goes to Asia, further disruptions in the region could exacerbate competition for limited global LNG resources. (PAP Business)