European natural gas prices rose following a U.S. attack on an Iranian vessel in the Strait of Hormuz, introducing fresh uncertainty over the prospects for reopening this critical global energy supply shipping route. Benchmark futures climbed by as much as 5%, recovering from a sharp drop the previous day. Prices remained highly volatile even as trading activity gradually picked up after holidays in Europe and the U.S. The price increase occurred after Iran's Supreme Leader, Mojtaba Khamenei, issued a statement declaring that Middle Eastern countries "will no longer serve as a shield for American bases." This came after U.S. President Donald Trump suggested that progress toward an interim agreement with Tehran was "proceeding very well." U.S. Secretary of State Rubio struck a more cautious tone. He told reporters that the two sides were still engaged in "repeated consultations" over the "specific wording in the preliminary document," indicating that negotiations might require several more days. Approximately one-fifth of the world's liquefied natural gas (LNG) transits the Strait of Hormuz. For the European gas market, the risk of a prolonged shipping disruption in the strait could intensify supply tightness, just as the region is rushing to replenish storage inventories ahead of winter. Current storage fill levels in Europe are just over 38%, significantly below the five-year average of 52% for this time of year. While most Middle Eastern LNG flows to Asia, a prolonged closure of the Strait of Hormuz could heighten global competition for supply—especially if Asian demand strengthens in the coming months. Italian energy company Edison, one of the European firms most affected by the disruption, stated that QatarEnergy has extended the force majeure on LNG deliveries to its receiving terminal until mid-August. Simultaneously, much of Europe, including major gas-consuming markets like France, Germany, and the UK, is experiencing a severe heatwave, driving up demand for cooling. Parts of Asia are also grappling with high temperatures, further adding to supply pressures in the market.