Investing.com – European natural gas prices ticked higher on Thursday, tracking a climb in oil prices, as markets took note of a report on Iranian demands for its uranium supply that dented hopes for an immediate peace deal that could reopen the Strait of Hormuz.
By 08:52 ET (12:52 GMT), was higher by 0.7% at 49.775 euros per megawatt hour, according to ICE data.
Gains were limited by the easing of maintenance at a gas field in Norway, as well as lower demand due to warmer temperatures in parts of Europe.
Iranian Supreme Leader Ayatollah Mojtaba Khamenei has issued a directive that the country’s almost weapons-grade uranium should not be shipped abroad, Reuters reported, citing two senior Iranian sources. The news service added that U.S. President Donald Trump has assured allies in Israel that Iran’s stockpile of highly enriched uranium would leave the country under any peace deal.
The White House has pushed back against the report, describing it as false, Fox News reported, citing a person directly involved in the negotiations.
A fragile ceasefire has taken hold since the start of the joint U.S.-Israeli assault on Iran in late February, with efforts aimed at resolving the impasse so far proving unsuccessful.
Trump has said the U.S. was in the “final stages” of a potential draft peace agreement, although he raised the specter of a re-escalation in hostilities, warning that “we’re going to do some things that are a little bit nasty” should a deal not be reached.
Iran, for its part, has said that it is reviewing Washington’s most recent position on concluding the conflict, but is ready to respond to more strikes with its own crushing barrage.
Iran also launched a new “Persian Gulf Strait Authority” to control traffic in the Strait of Hormuz, having earlier outlined plans to charge tolls in the channel.
Investors are particularly hunting for any indications that a deal could be made to reopen the Strait of Hormuz, a vital waterway off of Iran’s southern coast which has been all but closed to tanker traffic for weeks. Shipping data in media reports earlier this week indicated that some vessels have been able to traverse the conduit in recent days.
Roughly a fifth of the world’s oil and liquefied natural gas transits the strait, making its closure a key driver behind a spike in oil prices. Before the conflict, was exchanging hands at around $70 a barrel — on Thursday, it was exchanging hands above $105 a barrel.
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