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EMEA Natural Gas Update: Futures Edge Higher Despite Trump's Renewed Optimism on Iran Peace Deal

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European natural gas futures edged little higher on Tuesday, despite Israel and Iran's decision to halt mutual attacks, and US President Donald Trump once again expressing optimism regarding a potential peace deal with Tehran.

The Dutch TTF front-month contract was up 0.23% to 49.94 euros ($57.67) per megawatt-hour, while the UK NBP front-month contract gained 0.05% at 120.59 British pence ($1.61) per therm.

Speaking with reporters in New York on Monday, Trump said that the two countries were very close to a "good, strong, powerful deal," which he said was set to conclude over the next "two or three days," following which the Strait of Hormuz was going to reopen right away.

Trump also said that both Iran and Israel had agreed to "leave each other alone for another week," as all sides make progress towards a peace deal.

Meanwhile, the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, remained effectively closed for the 15th week running, with just 10 vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.

Daniel Hynes, a senior commodity strategist at ANZ highlighted other supply-side issues, such as the strike in Inpex's Ichthys LNG plant in Australia, where workers were planning to "increase strike action" after talks between the Union and management stalled.

This comes at a time when European gas inventories remain depleted, at just 42.48% of capacity, compared to 50.97%, during the corresponding period a year ago, according to Gas Infrastructure Europe.

Inventories were also significantly below the five-year average for this period, at 56.7%, according to data from the Swiss Federal Office of Energy.

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