UK natural gas prices fell below 134 pence per therm on Wednesday, extending their decline for a third consecutive session to the lowest level since July 16. The drop came as markets assessed the likelihood of a renewed Middle East agreement that could reopen the Strait of Hormuz and restore gas flows from the Persian Gulf.
Qatar reported that mediation efforts between the United States and Iran have reached an advanced phase, with a draft proposal already prepared. US officials also signaled optimism that a deal could be concluded in the near term.
Nonetheless, concerns remain elevated in Europe, where gas inventories are relatively low ahead of the winter heating season. The region’s storage levels are now at their lowest for this point in the year in nearly twenty years. With around one-fifth of global LNG supplies still disrupted by the conflict and Asian buyers aggressively competing for spot cargoes, analysts expect European gas prices to stay elevated. As a result, the market remains highly sensitive to any delays or setbacks in the ongoing diplomatic talks.
