European natural gas prices rose as U.S. President Donald Trump threatened tougher military action against Iran while pushing for negotiations to end the conflict that has disrupted global energy markets. Benchmark futures climbed as much as 5%, following a 15% decline over the previous four trading sessions. On Thursday, Trump urged Iran to engage in talks promptly, although uncertainty persisted regarding progress in negotiations. Earlier, the White House insisted that peace talks were still underway, while Iran publicly rejected U.S. overtures.

Inspired noted in a report that "hopes for a diplomatic breakthrough" had diminished, reinforcing bullish signals for natural gas prices. "Fresh missile and drone exchanges in the Gulf region continue to cloud the outlook," the report added. The conflict, now nearing the end of its fourth week, has reduced global liquefied natural gas supplies by approximately one-fifth. Europe needs to increase fuel purchases this summer to replenish depleted gas inventories ahead of next winter, while facing strong competition from Asia, which is entering its peak season for air-conditioning electricity demand.

The European benchmark, the Dutch front-month futures contract, rose 4.2% to €55.02 per megawatt-hour.