European natural gas futures climbed to roughly €57.4 per MWh on Tuesday, rebounding after a two-day slide, as traders assessed mixed signals from the Middle East conflict. President Trump announced a five-day postponement of previously threatened strikes on Iran’s oil infrastructure and said “productive discussions” with Tehran were underway. Iran, however, has denied that any such talks are taking place.
Energy markets have remained highly volatile since the conflict erupted, with the Strait of Hormuz still largely closed and constraining both crude and LNG shipping flows. Recent Iranian strikes have also knocked out about 17% of Qatar’s LNG export capacity, and repairs to damaged production facilities could take up to five years, according to QatarEnergy.
With European gas storage heavily drawn down over the winter, the region could face challenges refilling inventories this summer if disruptions continue and competition for LNG cargoes from Asia intensifies.
