05.08.202602:08:33UTC+00European Gas Prices Hover Near 2-Week Lows

European natural gas prices held near €55 per MWh on Wednesday, hovering close to the more than two-week low hit in the previous session, as markets weighed 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 US and Iran have reached an advanced stage, with a draft proposal already prepared, while US officials signaled optimism that a deal could soon be concluded. Nonetheless, concerns in Europe remain elevated amid historically low inventories, with regional gas storage now at its lowest level for this time of year in nearly twenty years. With roughly one-fifth of global LNG supply still offline due to the conflict and Asian buyers competing aggressively for available cargoes, analysts expect European gas prices to remain underpinned by a firm floor, leaving the market highly vulnerable to any delays or setbacks in the ongoing diplomatic talks.