European Gas Prices Fluctuate Amid Renewed Diplomatic Efforts

European natural gas prices have steadied around €55 per MWh on Wednesday but remain close to an over two-week low reached in the previous session. The market is weighing prospects of a renewed Middle East deal that could reopen the Strait of Hormuz and restore gas supplies from the Persian Gulf.

Qatar has announced that mediation efforts between the US and Iran have reached an advanced stage, with a draft proposal already prepared. American officials are optimistic about reaching an agreement soon.

However, concerns persist in Europe amid low inventories, with the region's gas storage levels at their lowest for this time of year in almost two decades. Analysts expect European gas prices to remain firm due to roughly one-fifth of global LNG supply still being disrupted by the conflict and Asian buyers competing aggressively for available cargoes.