FX.co ★ European Gas Prices Remain Near 2-Week Low

European natural gas prices climbed above €86/MWh on Monday but remained close to a two-week low, as traders balanced optimism over a potential diplomatic solution to the US–Iran standoff against persistent regional tensions. President Trump indicated that additional strikes on Iran were highly unlikely if negotiations made substantial headway. In contrast, Secretary of State Marco Rubio downplayed the chances of a breakthrough, calling Tehran’s demands unacceptable and unrealistic.

Despite the recent pullback, European gas prices are still more than twice their pre-conflict levels, reflecting disruptions to LNG shipments from the Persian Gulf and unusually low inventory levels. As of November 8, European storage sites were 72.65% full, well below the five-year seasonal average of 90%. Colder weather, combined with weak wind and solar output, has accelerated withdrawals from storage, while Norwegian pipeline exports have remained below capacity because of unplanned outages. This tight supply backdrop has heightened the risk of fierce competition with Asian buyers for available cargoes.