European natural gas prices are rising as traders await clearer shipping conditions in the Strait of Hormuz.

Natural gas prices in Europe have risen as traders await a response from the United States regarding Iran and Oman reaching an agreement on shipping through the Strait of Hormuz, while Europe is also under pressure to replenish its gas reserves before winter arrives. The benchmark European gas futures rose by as much as 4.7% on Thursday. Over the previous three trading days, prices had fallen by more than 10% due to market expectations that the relevant agreement might be reached. Iran has stated that it has reached an agreement with Oman regarding a proposed shipping route through the Strait of Hormuz, but the U.S. position on the related negotiations remains unclear. Tehran insists that the U.S. is not a party to the agreement between Iran and Oman and suggests that the return to normal shipping through the Strait of Hormuz will depend on whether Washington lifts its blockade on Iranian ports. U.S. President Donald Trump said at a rally in Las Vegas on Wednesday night that the U.S. is negotiating with Iran, "to see what happens."