European natural gas prices rallied sharply on Thursday after Iran signaled its refusal to engage in negotiations aimed at resolving the Middle East conflict. UK natural gas futures rose 3.66% to 134.5 pence per therm, while Dutch TTF gas futures climbed 3.7% to €54.4 per megawatt-hour—reflecting investor concern that energy supply disruptions will persist indefinitely.
Iranian officials stated that Tehran is "studying" the US ceasefire proposal but refuses to negotiate broader Middle East settlements. This hardline stance has eroded trader optimism regarding a near-term diplomatic resolution. Analysts at EnergyScan noted that Washington's ultimatum—offering negotiations while threatening "even stronger strikes" if rejected—leaves Tehran with limited incentive to compromise, extending the supply shock timeline.
The LNG market faces additional pressure from delayed US export facility construction. Freeport LNG officials cautioned that prolonged supply disruptions may defer planned expansions of US LNG production. With European heating season still active and temperatures forecast to remain below normal through the weekend, sustained gas demand pressure reinforces upward price momentum. TankerMap LNG carrier tracking shows persistent supply constraints with minimal new cargo availability from global sources.