European natural gas prices held above €92/MWh on Wednesday after two consecutive sessions of losses, as traders balanced diplomatic efforts to resolve the Middle East conflict against fears that ongoing violence could further disrupt energy flows. Qatar is continuing to mediate between the US and Iran, with both sides said to be considering new proposals aimed at easing tensions. The negotiations are taking place against a backdrop of continued Iranian attacks on commercial vessels in the Strait of Hormuz and limited US defensive strikes on Iranian targets.
Despite the talks, supply anxieties remained elevated amid rising heating demand and gas storage levels that are still below seasonal benchmarks. Germany’s storage sites were about 61% full, short of the government’s 70% target, while EU-wide inventories remained under 75%, the lowest level recorded for this point in the year. With temperatures across Northwest Europe forecast to fall further this week, heating demand is expected to increase, adding to concerns over supply tightness.
