European natural gas prices hovered around €56.7 per MWh on Tuesday, retaining most of the sharp losses from the previous session after U.S. President Donald Trump voiced optimism about diplomatic efforts to ease tensions with Iran. Trump said on Monday that Washington and Tehran were having “good talks” and that a deal was possible, while cautioning that U.S. strikes would resume if negotiations failed. His remarks came after both sides paused hostilities to make room for diplomacy.
Nevertheless, concerns about Europe’s gas supply remain elevated, as the bloc’s storage levels risk falling short of winter refill targets. The renewed escalation of the conflict in early July derailed the recovery in LNG exports from Qatar, the Middle East’s largest LNG supplier. With the Strait of Hormuz still largely closed, it is still unclear when additional supplies from the region will be able to reach global markets.
