FX.co ★ European Gas Rebounds on Middle East Uncertainty

European natural gas prices climbed toward €74/MWh on Thursday, rebounding from a three-week low amid uncertainty over a diplomatic breakthrough in the Middle East that could lead to a reopening of the Strait of Hormuz. Iranian President Masoud Pezeshkian said Tehran would never bow to US pressure but remained open to talks and diplomacy, while setting conditions for resuming negotiations. The key shipping route remains largely shut, constraining LNG exports from the Persian Gulf. As the winter heating season approaches, Europe’s gas storage levels remain a central concern: facilities are about 70% full, still below both the five-year seasonal average and the region’s 80% target. Goldman Sachs reiterated that risks to gas prices are skewed to the upside, warning that the European benchmark could exceed €100/MWh at the peak of winter if LNG exports from the Gulf do not increase.