European natural gas prices stabilized around €58 per MWh on Tuesday after falling in the previous session, as traders closely monitored negotiations in the Middle East for signs of progress on reopening the Strait of Hormuz. President Donald Trump described his latest offer of talks as Iran’s “last chance” to reach an agreement and avert large-scale air strikes. Tehran, however, denied engaging in direct negotiations with Washington, though it acknowledged that discussions with Oman aimed at facilitating shipping through the strategic chokepoint were advancing.
The conflict has disrupted around one-fifth of global LNG supply, intensifying competition between European and Asian buyers for available cargoes and complicating Europe’s efforts to rebuild gas inventories ahead of winter. Consequently, European gas storage levels have dropped to their lowest for this point in the year in nearly two decades, deepening concerns about the region’s gas supply security as the heating season approaches.
