Amsterdam: European natural gas prices rose sharply on Monday after Iran reversed its decision on reopening of the Strait of Hormuz. At the Amsterdam exchange, the benchmark TTF one-month forward contract climbed nearly 6% to pound 41.02 ($48.26) per megawatt hour (MWh).

According to Nam News Network, over the weekend, Iran withdrew its earlier announcement to reopen the Strait of Hormuz and stepped up military action against vessels in the area. Tensions were further fuelled by a US naval blockade in the strait. The United States Navy on Sunday attacked and seized an Iranian cargo ship. Iran's military accused Washington of "armed piracy" and vowed to respond.

The Iran war and the closure of the vital trade route used by Gulf energy producers had previously driven natural gas prices as high as pound 74 per MWh in March. Before the outbreak of the conflict, prices stood at around pound 31 per MWh.