European natural-gas prices rose sharply Thursday as uncertainty over potential U.S.-Iran talks heightened concerns about supply disruptions. The benchmark Dutch TTF front-month contract increased 2.7% to €54.23 per megawatt-hour, reflecting market anxiety over prolonged conflict and potential LNG flow interruptions. Analysts warn this could intensify competition for cargo during Europe's critical stockpiling season, with Dutch storage at just 6% capacity and German inventories at 22% – levels dangerously low ahead of winter demand.

ANZ analysts caution that refilling these reserves could become more competitive if supply disruptions persist, amplifying price pressures across the continent. This development underscores the vulnerability of European energy markets to geopolitical volatility and underscores the urgency for alternative supply sources.