EU Gas Prices Plunge 10.5% Amid Eased Supply Concerns

European natural gas prices fell sharply by 10.5% on the week as supply concerns eased, particularly over LNG shipments through the Strait of Hormuz.

The price drop was triggered by reports that Iran could reopen the Strait if the US lifted its blockade and diplomatic efforts resumed.

However, expectations for rapid progress in US-Iran contacts faded later in the week, causing prices to rebound slightly before settling at €71.16 per megawatt-hour (MWh) on Friday.

The relatively weak seasonal gas demand ahead of winter and continued injections into European storage facilities kept downward pressure on prices.