European natural gas futures fell nearly 2% to below €40 per MWh on Tuesday, erasing part of the previous session’s gains as traders focused on a second round of peace talks between the US and Iran. Tehran is reportedly preparing to send a delegation after earlier signaling reluctance to take part.
Uncertainty remains high, however. President Trump said he is unlikely to extend the two-week ceasefire, which is due to expire on Wednesday, and reaffirmed that the Strait of Hormuz will stay closed until a deal is reached. Traffic through the strait was halted again over the weekend amid rising tensions, with ships coming under fire and Iran warning that any vessels attempting to transit the waterway could be targeted.
Several LNG tankers from Qatar were reported to have approached the strait in recent days but were either forced to turn back or left waiting idle. Since the war began in late February, no LNG exports have departed the region, disrupting roughly 20% of global LNG supply.
