Gas prices in Europe are falling amid progress in U.S.-Iran talks — Bloomberg

Natural gas prices in Europe continued to fall amid optimism about potential progress in negotiations between the U.S. and Iran, which could lead to the restoration of stable energy supplies through the Strait of Hormuz.

This was reported by Bloomberg.

The European gas market reacted with falling prices following statements by U.S. President Donald Trump regarding the constructive progress of negotiations with Tehran. Despite this, the American leader noted that Washington does not intend to rush into concluding an agreement.

Against this backdrop, futures for Europe’s key gas benchmark fell by 6.7%. The monthly contract in the Netherlands, which serves as a benchmark for the European market, had dropped by 4.9% as of this morning—to 46.32 euros per megawatt-hour.

Analysts note that the potential resumption of full-scale operations in the Strait of Hormuz could reduce risks to global energy supplies. In the event of disruptions to transit through this route, Europe could face increased competition from Asia for limited volumes of liquefied natural gas.

Gas reserves in Europe remain an additional cause for concern. Currently, underground storage facilities are approximately 38% full, which is significantly below the five-year average for this period, which exceeds 50%.

Experts note that this year, the pace of stockpiling ahead of the winter season remains slower than usual.

U.S. natural gas prices have surged to a historic high.

Putin has cut gas prices for China to a minimum, according to Reuters.