European natural gas prices experienced a slight increase due to uncertainties surrounding the long-term sustainability of the U.S.-Iran ceasefire and the unclear timeline for restoring energy supplies from the Middle East.

Benchmark futures rose by as much as 2.6%, reversing earlier declines, while oil prices also saw modest gains.

Washington and Tehran are considering extending the ceasefire by two weeks to allow more time for reaching a peace agreement, which has somewhat reduced the risk of renewed conflict, although tensions persist over the Strait of Hormuz. As a result, natural gas prices approached their lowest level in about six weeks, but shipping activity through the key waterway remains largely halted.

While the majority of liquefied natural gas from the Middle East typically flows to Asia, Europe must compete with other buyers for limited global supplies while also facing pressure to replenish storage before the next winter season.

As of 1:09 p.m. Amsterdam time, Europe's benchmark Dutch front-month futures increased by 0.8%, reaching €41.74 per megawatt-hour.