European Gas Prices Steady Near 3-Week Lows Amid Diplomatic Progress

European natural gas prices have steadied near three-week lows as traders weigh competing supply risks. The pause in volatility follows two sessions of volatile trading, during which energy desks digested reports of progress in Middle East diplomatic talks.

The risk premium has eased slightly following reports that negotiations between US and Iranian officials are advancing toward a draft proposal aimed at securing safe passage through the Persian Gulf shipping corridors.

However, market participants caution that structural supply constraints are keeping a firm floor under continental benchmark prices. Liquefied natural gas (LNG) carrier traffic through the Strait of Hormuz remains significantly constrained, continuing to hamper normal summer delivery schedules from key Middle Eastern exporters such as Qatar.