European Gas Prices Ease

European natural gas futures fell toward €44 per MWh, retreating from a two-week high as investors assessed the latest diplomatic efforts to reopen the Strait of Hormuz. The White House said US officials were reviewing Iran’s latest proposal but maintained red lines on any agreement to end the war. The proposal reportedly includes reopening the strait in exchange for Washington lifting its blockade on Iranian ports, with discussions on Tehran’s nuclear program to be held at a later date. This followed the collapse of a second round of talks in Pakistan over the weekend after delegations from both sides pulled out. The strait remains largely impassable, with both sides maintaining restrictions around the key waterway, disrupting flows of roughly one-fifth of global LNG supply. Traders are monitoring Europe’s LNG imports, as the region needs to secure fuel this summer to replenish storage levels ahead of next winter.

European natural gas futures traded near €45 per MWh on Monday, hovering at their highest level since April 13, as a second round of US–Iran peace talks failed to materialize, keeping tensions around the Strait of Hormuz elevated. Hopes of a diplomatic breakthrough were dampened over the weekend after President Donald Trump canceled his envoy’s planned trip to Pakistan, while Iran rejected talks conducted under threat. Both sides continue to maintain restrictions around the Strait, making the key waterway difficult to navigate. Meanwhile, Iran has reportedly given a new proposal to the US to reopen the Strait and end the war, while postponing nuclear talks to a later stage. LNG exports from the Persian Gulf have effectively come to a standstill since the conflict began in late February, cutting off roughly one-fifth of global supply. Investors are closely watching Europe’s LNG imports, as the region needs to secure fuel this summer to refill storage ahead of next winter.

European natural gas futures fell toward €44 per MWh on Friday, reversing earlier gains and ending a four-day winning streak after reports that a second round of US-Iran talks is expected. Iranian Foreign Minister Abbas Araghchi was said to be heading to Islamabad, raising hopes of progress in efforts to ease the conflict with the United States. According to reports citing sources familiar with the talks, there is a high likelihood of a breakthrough in negotiations involving the countries linked to the dispute. Since the conflict began in late February, LNG exports from the Persian Gulf have effectively come to a halt, disrupting roughly one-fifth of global supply. This has raised serious concerns for Europe, particularly as the region needs to rebuild gas stocks ahead of winter. For the week, European natural gas prices are still up more than 13%.