-- European natural gas futures were up over 2% on Wednesday, after Iran seized two vessels in the Strait of Hormuz, marking a major escalation in the conflict.
The front-month Dutch TTF futures price was up 1.12% to 42.40 euros per megawatt hour ($49.74), while UK NBP futures were up 0.87% to 106.03 British pence per therm ($1.43).
On Wednesday, the Islamic Revolution Guards Corps said that they had intercepted and seized two vessels in the strategically crucial Strait for violating regulations, according to a report by Iran's Tasnim News Agency.
The IRGC Navy said that the two ships, named MSC-Francesca and Epaminodes, were operating in the Strait without proper authorizations, while manipulating navigation aid systems, which they said endangered maritime safety in the region.
The vessels have since been transferred to Iranian territorial waters for thorough inspection of their cargoes, documents and other records.
This comes just hours after US President Donald Trump said in a Truth Social post that he was extending the two-week-long ceasefire with Iran, giving the country time to submit its proposals and conclude discussions, while still being under a US naval blockade.
Meanwhile, Iran has said that it has not requested a ceasefire, while the country's envoy to the UN, Saeed Iravani, has signaled that Tehran would be open to talks if the US were to lift its blockade against the country, the Tasnim News Agency reported.
"We have received some signs that the US is ready to break [the naval blockade,] and as soon as they do, I think the next round of negotiations will take place in Islamabad," he said.
The Strait of Hormuz continued to remain effectively closed for the eighth week running, with just 5 vessels transiting through it over the past 24 hours, according to the Hormuz Strait Monitor.
While traffic along the Strait has witnessed an uptick in recent days, it remains to be seen if it continues amid such disruptions and uncertainties.
This comes at a time when European natural gas inventories remain depleted, at 30.61% of capacity, compared with 37.04% during the corresponding period a year ago, according to Gas Infrastructure Europe.