Europe's Gas Prices Steady Near Two-Week Lows Amid Ongoing Diplomatic Tensions

European natural gas prices have settled around €55 per MWh on Wednesday, still near their two-week low from the previous session. The market is weighing the prospects of a renewed Middle East deal that could reopen the Strait of Hormuz and restore gas supplies from the Persian Gulf.

Qatar has reported that mediation efforts between the US and Iran have reached an advanced stage, with a draft proposal already prepared. American officials are optimistic that an agreement could be reached soon, but concerns persist in Europe amid low inventories.

The region's gas storage levels are at their lowest for this time of year in almost two decades. With one-fifth of global LNG supply still disrupted by the conflict and Asian buyers competing aggressively for available cargoes, analysts expect European gas prices to remain firm.