European natural gas prices climbed on Thursday as traders awaited a US response to an agreement between Iran and Oman regarding shipping through the Strait of Hormuz, while the region faces mounting pressure to replenish gas reserves before winter.

The benchmark European gas futures rose as much as 4.7% during the session. This rally followed three consecutive days of declines, during which prices had dropped over 10% on expectations that a deal might be reached.

Iran has announced that it reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz. However, the United States' position on the negotiations remains unclear. Tehran insists that Washington is not a party to the Iran-Oman agreement and has suggested that a return to normal navigation through the strait depends on the US lifting its blockade on Iranian ports.

US President Donald Trump stated at a Las Vegas rally on Wednesday evening that the US is in talks with Iran, adding, "let's see what happens."

With less than three months until the start of the European heating season, ongoing shipping disruptions are making it increasingly difficult for Europe to replenish its depleted gas storage ahead of winter. This situation also sets the stage for a more intense competition between European and Asian buyers for liquefied natural gas cargoes.

European gas storage levels have recently fallen to their lowest point for this time of year since records began in 2009, further intensifying market concerns about winter gas supply. The Dutch TTF natural gas futures, the European benchmark for next-month delivery, rose 3.8% to €54.38 per megawatt-hour.