European natural gas futures were flat on Thursday, after US President Donald Trump continued to express optimism over a peace deal with Iran, despite renewed hostilities.
The Dutch TTF front-month contract was down 0.03% to 48.850 euros ($56.85) per megawatt-hour, while the UK NBP front-month contract gained 0.05% to 117.960 British pence ($1.58) per therm.
Speaking to reporters from the Oval Office on Wednesday, Trump said that negotiations with Tehran were going "very well," while suggesting that a deal could potentially be reached "over the weekend."
He also added that Iran had agreed not to acquire or develop a nuclear weapon, a key point of contention between the two sides.
Meanwhile, the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, remained effectively shut for the 14th week running, with just 10 vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.
Senior commodity strategist at ANZ, Daniel Hynes, said that shortages are emerging in Asian markets, which hold major ramifications for Europe.
European inventories are at 41.03% of capacity, compared to 49.22% during the corresponding period a year ago, according to data from Gas Infrastructure Europe.
They were significantly below the five-year average for this period, at 55.1%, according to the Swiss Federal Office of Energy.
This also comes at a time when Europe is dealing with an unprecedented heatwave, with almost the whole of the continent currently "warming at roughly twice the global average rate," according to Severe-Weather EU.