Gains in European natural gas prices were pared Tuesday after peace talks between Russia and Ukraine finally yielded some signs of progress. 

While the Title Transfer Facility finished higher Tuesday, gains were muted after Russia said it would cut military operations in the Ukrainian cities of Kyiv and Chernihiv. After talks in Turkey, officials also reportedly said that a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky could be set if a peace agreement is drafted.

The conflict in Ukraine has kept the market on edge over the possibility that Russia could shut off supplies to Europe in retaliation to Western sanctions or due to infrastructure damage. Prices charged higher early Tuesday after the Kremlin said late Monday it was working...