European natural gas prices climbed to about €41.5 per MWh but still looked set to post a weekly decline of more than 11%, as concerns over Middle East supply disruptions eased. An interim peace agreement between the US and Iran, signed on Wednesday, has allowed shipping through the Strait of Hormuz to begin normalizing, with several vessels reported to have transited the route on Thursday. The reopening of this key corridor pushed European gas prices to a two-month low, reversing most of the gains driven by the recent conflict.
Qatar, the world’s largest LNG exporter, is preparing to ramp up production quickly at its Ras Laffan facilities and expects output at sites unaffected by Iranian strikes to be restored to full capacity within a month. The resumption of LNG exports from the Persian Gulf is expected to bolster Europe’s efforts to rebuild its relatively low gas storage levels ahead of next winter.
