European natural gas prices surged as geopolitical tensions escalated, with TTF futures rising nearly 3.5% amid reports the EU may impose fresh sanctions on Russian banks and energy firms. The rally comes as gas storage levels fall below seasonal norms, heightening supply concerns, ING's commodity experts Ewa Manthey and Warren Patterson note.

US calls for full halt to Russian Oil and Gas imports

"European natural gas prices rose yesterday, with the Title Transfer Facility (TTF) settling almost 3.5% higher on the day. The gain comes as heavy Russian strikes on Ukraine on the weekend prompted discussions over further sanctions against Moscow."

"Recent reports suggest that the European Union is exploring new sanctions on Russian banks and energy companies to pressure President Vladimir Putin to end the war against Ukraine. Meanwhile, the US Energy Secretary suggested that European countries should stop buying Russian oil and gas."

"Meanwhile, EU gas storage is 79.5% full, below the 92.7% year-on-year and lower than the five-year average of 86% at this time of the year."