-- European natural gas futures were down more than 8% in after-hours trade on Tuesday, after news that US President Donald Trump said US-Iranian peace talks could start up again within a few days.
The front-month Dutch TTF contract dropped 8.075% to 42.665 euros ($50.32) per megawatt-hour, while UK NBP futures dropped 8.28% to 107.12 British pence ($1.45) per therm.
President Donald Trump told the New York Post that "something could be happening over the next two days," suggesting that another round of US-Iran peace talks could take place in Islamabad, Pakistan.
Additionally, talks were underway on Tuesday in Washington between Lebanese and Israeli representatives with US Secretary of State Marco Rubio.
At the same time, reports from the Strait of Hormuz indicate continued maritime activity despite the blockade announcement, the BBC reported. Several Iran-linked vessels were said to have crossed the key shipping route, including ships linked to Iranian ports.
Falling prices and news of movement across the strait are good news for those looking to replenish Europe's depleted inventories ahead of winter. Gas Infrastructure Europe reported on Tuesday that EU storage levels are currently at 29.54% of capacity, when year-ago levels were 35.62%.
Mild weather across most of Europe and reduced heating demand are expected to allow more natural gas to move into storage.
Additionally, competition for LNG cargoes has eased as Asian buying interest has receded, Trading Economics said. Asian LNG imports have declined to their lowest level in nearly six years as seasonal demand softened and high prices during the US-Israel-Iran crisis have caused some demand destruction.