London: European natural gas prices saw a rebound on Thursday, recovering from earlier sharp declines. This resurgence is attributed to Iranian media reports and renewed disruptions in the Strait of Hormuz, which have cast doubt on the stability of a US-brokered ceasefire, raising concerns over the global fuel supply once again.

According to Anadolu Agency, the Dutch TTF benchmark for natural gas traded up by 2.5% to £46.3 ($54) as of 0745GMT. This increase follows a period last month when the TTF index rose above the £62 mark, a spike associated with the closure of the Strait of Hormuz and Iran’s attacks on energy infrastructure in the Gulf region.

Earlier on Wednesday, there was a significant drop in gas prices, plunging 20% to below £43 after the ceasefire announcement between Tehran and Washington, which initially alleviated fears of supply disruptions in the Middle East. However, sentiments shifted after the Tasnim News Agency reported that Iran may withdraw from the ceasefire if Israel continues its alleged violations in Lebanon.

Further reports from Iranian media indicated that oil tanker transits through the Strait of Hormuz had halted anew following Israeli strikes on Lebanon, despite the safe passage of two tankers earlier after the ceasefire announcement. Tasnim also mentioned that a ‘huge number’ of vessels were reportedly stuck in the vital maritime passage.

The situation was compounded by Iran’s state broadcaster IRIB, which quoted the Ports and Maritime Organization stating that vessels must coordinate with the Islamic Revolutionary Guard Corps Navy and adhere to designated routes to pass through the strait. Additionally, a spokesperson from the EU Commission, Anna-Kaisa Itkonen, remarked on Wednesday that the energy price crisis “will not be short-lived,” indicating that even as Iran attempts to reopen the Strait of Hormuz, stable energy markets are not expected to return swiftly.