The US deadline for Iran is approaching, and European natural gas prices are reversing course.

Investing.com - On Tuesday, European natural gas prices reversed the spike seen earlier in the session, as investors weighed the looming deadline set by the U.S. for Iran to reopen the Strait of Hormuz, along with Pakistan’s ongoing mediation efforts to push for a ceasefire.

According to data from Intercontinental Exchange (ICE), as of 05:47 a.m. Eastern Time (17:47 Beijing time), the Netherlands TTF hub benchmark monthly contract fell 2.0% to 49.16 euros per megawatt-hour.

Many European countries use natural gas exported from producers in the Persian Gulf region (especially Qatar). But due to Iran’s attacks on energy infrastructure in the area, supplies have been affected, and analysts warn that even if the war is nearing an end, supply may not return to normal immediately.

Citing strategies from ANZ analysts, the Wall Street Journal said that tight inventories are making European and Asian markets more sensitive to harsh weather and supply disruptions. The analysts told the Wall Street Journal that as more traders shift to relatively safer long-term contracts, the spot market is also showing signs of weakening liquidity.

On Monday, U.S. President Donald Trump reiterated his threat that if Tehran does not agree to a deal to halt hostilities and reopen the Strait of Hormuz, he will strike Iran’s bridges and power plants. The Strait of Hormuz is an important waterway off Iran’s southern coast; about one-fifth of the world’s oil is transported through the strait, which has been blocked by Iran for several weeks.

Trump warned that if the United States launches fresh attacks, Iran would need “100 years to rebuild.”

But Trump’s tough rhetoric also came with an added condition: that the war can be resolved through diplomatic channels. The war began with a joint strike on Iran by the U.S. and Israel in late February.

Meanwhile, an Iranian official said Pakistan’s mediation efforts are nearing a “critical, sensitive phase.” Iran’s ambassador to Pakistan, Reza Amiri Moghadam, did not provide further details in a social media post, saying only, “Please stay tuned for more updates.”

On Tuesday, Iran and Israel continued to attack each other. Israel is currently conducting, together with the U.S., a military operation against Tehran that has been ongoing for six weeks.

This article was translated with the assistance of AI. For more information, please see our Terms of Use.