FX.co ★ European Gas Prices Ease

European natural gas prices slipped to around €50 per megawatt-hour, retracing part of an over 3% gain in the previous session, after Israel and Iran agreed to halt mutual attacks following a recent surge in hostilities. Israeli Prime Minister Benjamin Netanyahu stated that Israel is temporarily suspending strikes on Iran but will retaliate if Tehran resumes aggression, while Iranian media signaled a comparable position. The shift helped sustain hopes for renewed negotiations toward a broader ceasefire in the Middle East.

Nonetheless, uncertainty remained elevated. The Strait of Hormuz—through which roughly one-fifth of global LNG supplies transit—continued to face significant constraints, creating headwinds for importing regions as disruptions tightened global supply and intensified competition for cargoes. These conditions have amplified concerns about Europe’s capacity to replenish gas storage ahead of the coming winter.