European natural gas futures were up on Monday, after peace talks between the US and Iran got off to a tense start over the weekend, before concluding on a positive note, according to a statement issued by the mediators.
The Dutch TTF front-month contract rose 1.35% to 42.660 euros ($48.84) per megawatt hour, while the UK NBP front-month contract gained 1.62% to 102.700 British pence ($1.36) per therm.
Over the weekend, Iran's state media reported that the country's delegation had suspended talks in Switzerland following fresh warnings from US President Donald Trump regarding Tehran's support for Hezbollah, according to Trading Economics.
However, according to the latest statement issued by Qatar and Pakistan, the Summit went ahead and was conducted in a "positive and constructive atmosphere," with both sides agreeing to the establishment of a high-level committee, which will provide political oversight as negotiations advance.
Meanwhile, the Strait of Hormuz, which accounted for one-fifth of global LNG flows, witnessed a sharp spike in traffic, with 25 vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.
This is still significantly below the peacetime average of 138 vessels per day, according to the UK's Joint Maritime Information Center.
Daniel Hynes, a senior commodity strategist at ANZ, noted that just one LNG-laden vessel had transited through the Strait since the deal was signed last week.
European gas inventories are at 46.4% of capacity, compared to 55.4% during the corresponding period a year ago, according to data from Gas Infrastructure Europe.
Inventories are below the five-year average for this period, at 60.9%, according to the Swiss Federal Office of Energy.