European natural gas prices retreated on Tuesday after the United States announced an international naval force to protect commercial and energy cargoes transiting the Red Sea.

The Title Transfer Facility erased the gains it made Monday amid escalating tensions in the Middle East. The prompt month contract fell 8% to close at $10.47/MMBtu, its lowest point since September. The Pentagon said the UK, Bahrain, France, Norway and other countries would join the naval force to stop Iranian-backed Houthi militants from attacking commercial vessels. 

The Houthis, who support Palestine and Hamas, have launched rocket and drone attacks from Yemen against vessels transiting the Bab al-Mandab strait in the southern Red Sea. The strait is a key waterway that allows ships to travel to...