European natural gas prices were choppy on Wednesday, as investors assessed Iran’s claims that its forces had seized two ships near the Strait of Hormuz after President Donald Trump declared an extension to a ceasefire with Tehran.

By 09:11 ET (13:11 GMT), the benchmark Dutch front-month contract at the TTF hub had risen by 1.4% to 42.48 euros per megawatt hour (MWh), according to data from the Intercontinental Exchange. The contract dipped earlier in the session.

State media in Iran reported that the paramilitary Islamic Revolutionary Guards Corps had attacked a ship in the strait, saying the vessel was “stranded” on the Iranian coast.

Shipping monitor U.K. Maritime Operation said a separate container ship in the strait was attacked, shortly after a boat belonging to the Revolutionary Guards struck a ship in the area. Iranian state media claimed that the Revolutionary Guards seized these two vessels.

Trump has also said an ongoing U.S. blockade of Iranian ports and coastline — an action that Iran’s foreign minister has argued constitutes an “act of war” — will stay in place. He argued that Iran is “collapsing financially!” and wants the strait to be “opened immediately” because Tehran is “Starving for cash.”

Tanker shipping through the Strait of Hormuz, a vital waterway off of Iran’s southern coast through which roughly a fifth of the world’s oil traverses, has been all but closed since the start of the war in late February.

Along with exposure to the energy shock, Europe has also been grappling with damage from strikes to natural gas production facilities in the Middle East, particularly Qatar. Benchmark natural gas prices are also above levels before the start of the joint U.S.-Israeli assault on Iran.

In a statement on social media on Tuesday, Trump said that he had agreed to the ceasefire extension at the request of Pakistan, a frequent mediator between the U.S. and Iran.

He added that the “Attack on the Country of Iran” will be held off “until such time as their leaders and representatives can come up with a unified proposal […] and discussions are concluded, one way or the other.”

Iran’s foreign ministry spokesperson acknowledged the ceasefire extension in comments carried by Iranian state television, the Associated Press reported.
Source: Investing.com