European natural gas prices slipped below €60 per MWh on Thursday but remained more than 8% higher for the week, as supply worries persisted amid uncertainty over efforts to resolve the Middle East conflict and reopen the Strait of Hormuz. Negotiations between the US and Iran appear to have stalled, with both sides hardening their positions and President Trump asserting that Washington has full control over the key waterway and intends to maintain it.
Shipping disruptions have sharply reduced LNG flows from the Gulf, significantly delaying cargoes from major exporter Qatar and complicating Europe’s efforts to rebuild gas inventories ahead of winter. Analysts expect European gas prices to retain a solid floor until storage levels show more decisive signs of replenishment before the heating season begins. At the same time, intense summer heatwaves across Southern and Central Europe have boosted gas-fired power generation to meet soaring cooling demand, further diverting supplies away from storage.
