European gas holds near multi-year highs as Iran sanctions loom

European natural gas prices remained near multi-year highs, hovering around €65.8/MWh on Monday, as investors awaited details of a US plan to economically isolate Iran that could further disrupt energy supplies from the Middle East.

Treasury Secretary Bessent is scheduled to hold a press conference later today and has threatened to impose “the toughest sanctions in history” on Iran.

This follows President Trump’s threat last week to impose sanctions on countries that continue trading with Tehran.

Iran, however, dismissed the threats as a sign of desperation, saying the new sanctions would fail to defeat Tehran.

For Europe, concerns over gas inventories are becoming increasingly pressing, as ongoing tensions between the two sides have kept the Strait of Hormuz largely closed, delaying Qatari LNG deliveries to Europe.

This, combined with heatwave-driven cooling demand, has slowed the pace of inventory replenishment, leaving European storage levels under greater pressure ahead of winter.