European natural gas prices steadied around €95/MWh on Tuesday, after having fallen more than 8% in the previous session amid growing optimism about a possible diplomatic breakthrough in the Middle East. The shift in sentiment followed signals from both the US and Iran indicating a willingness to engage in peace talks. On Monday, President Trump suggested progress was being made in negotiations aimed at averting a renewed conflict, while Tehran reported “intensive” exchanges and indicated it was prepared to reopen the Strait of Hormuz under strict conditions.
Nonetheless, investors remained wary as attacks on shipping in the strategically vital waterway continued. At the same time, Europe’s gas market stayed tight: storage sites were 74.56% full as of November 2, well below historical norms. Forecasts for unseasonably cold weather across Northern and Central Europe this week are expected to boost heating demand, potentially forcing utilities to begin drawing down stocks from storage earlier than usual.
