European natural gas prices pushed higher on Wednesday, with investors noting scant indications for a breakthrough in peace talks between the U.S. and Iran that could lead to a reopening of the Strait of Hormuz.

By 08:41 ET (12:41 GMT), the benchmark Dutch front-month contract at the TTF hub was up by 1.81 euros to 45.40 euros per megawatt hour, according to ICE data.

U.S. President Donald Trump has instructed aides to prepare for a prolonged blockade of Iran, signaling a shift toward sustained economic pressure as Washington weighs its next steps in the conflict, the Wall Street Journal reported on Tuesday.

Citing U.S. officials, the report said Trump has opted to intensify efforts to choke Iran’s oil exports and restrict shipping to and from its ports, viewing a blockade as less risky than either resuming large-scale military strikes or pursuing a rapid diplomatic exit.

The move follows an April ceasefire that halted a major bombing campaign but left tensions elevated across the region.

The Journal said Trump recently rejected a three-step Iranian proposal that would have unblocked the Strait of Hormuz early while deferring nuclear negotiations, judging it insufficient to address U.S. demands for curbs on Tehran’s nuclear program.

Trump is not willing to drop a key demand that Iran commit to suspending uranium enrichment for at least 20 years and accept restrictions beyond that period, the report added.

The effective closure of the Strait of Hormuz, a vital waterway through which roughly a fifth of the world’s liquefied natural gas flows, has powered an energy shock. Against this backdrop, TTF prices remain well above levels where they were at before the start of the war in late February.
Source: Investing.com