FX.co ★ European Gas Holds Losses as Traders Assess Hormuz Developments

European natural gas prices hovered around €60 per MWh on Wednesday, stabilizing after the previous session’s decline, as traders weighed diplomatic efforts to reopen the Strait of Hormuz and restore LNG shipments from the Gulf. Pakistan’s defense minister said the US and Iran were “close to some sort of arrangement” regarding the strategic waterway, and talks between Tehran and Oman were also reported to be making substantial progress. Nonetheless, uncertainty surrounding a rapid reopening of the strait remains high, with both sides hardening their stances. The prolonged disruption to maritime traffic has sharply curtailed LNG flows, causing significant delays to cargoes from major exporter Qatar. Analysts expect European gas prices to retain a solid floor until storage levels show clearer progress toward seasonal refill targets ahead of winter. In addition, hot weather across Europe is driving up electricity demand for air conditioning, adding further pressure to the gas market.