European natural gas prices retreated on Monday, pausing after a 7% weekly advance that pushed contracts to their highest levels since March. Dutch front-month futures and equivalent British wholesale gas benchmarks each fell 0.8%, paring gains from the prior session.
Global crude benchmarks also pulled back, with Brent futures declining about 1.5% to trade near $91.80 per barrel. The drop followed a 5% gain in the previous week, as investors awaited fresh developments on U.S. sanctions targeting Iran.
The U.S. Treasury is set to unveil comprehensive economic sanctions on Monday, targeting foreign entities engaged in trade with Tehran. The measures were framed by Washington as "the largest financial offensive ever mobilized," according to a statement released over the weekend. Iranian authorities responded by warning that continued economic pressure would result in a complete halt to all energy exports originating from the Persian Gulf.
Market participants remained focused on a scheduled press conference at 15:00 local time by U.S. Treasury Secretary Scott Bessent, where details of the new punitive measures were expected to be disclosed. Despite Monday’s slight decline, underlying tightness in European gas markets persisted due to ongoing maritime shipping disruptions in the Middle East and significant deficits in underground storage levels across the continent.
