European natural gas prices climbed back above €66 per megawatt-hour on Thursday after a two-day slide, as investors weighed signs of diplomatic progress in the Middle East. Iran’s military announced that Tehran and Oman had reached agreements on sharing control and revenue from the Strait of Hormuz.
Tehran emphasized, however, that the deal does not entail an immediate reopening of the waterway. Iranian officials warned that the strait will remain closed unless the United States accepts the terms of the proposal, adding to uncertainty over when energy flows might return to normal.
Ongoing restrictions in the Strait of Hormuz have disrupted LNG exports from the Persian Gulf, causing significant delays to shipments from major supplier Qatar. At the same time, extreme summer heat has driven up demand for gas-fired power generation, leaving European gas storage just 63% full—its lowest level for this point in the year since 2009.
Against this backdrop, gas prices remain highly exposed to further volatility, particularly if supply disruptions extend into the peak winter heating season.
