FX.co ★ European Gas Prices Ease

European natural gas futures slipped to €47.7 per megawatt-hour, giving back part of the 6.7% rally seen in the previous session amid fears of prolonged supply disruptions. Monday’s sharp gains had been driven by renewed geopolitical tensions after Iran suspended indirect talks with the US over Israel’s escalating attacks in Lebanon and threatened to extend its blockade from the Strait of Hormuz to the Bab el-Mandeb Strait, another key chokepoint at the southern entrance to the Red Sea. Even so, President Donald Trump stated that negotiations were still continuing. The ongoing closure of the Strait has removed roughly one-fifth of global LNG flows from the market, complicating conditions for importing regions as tighter supply and heightened competition for cargoes push prices higher. This has intensified concerns over Europe’s ability to rebuild gas inventories ahead of winter, with storage currently at just 38% of capacity.