FX.co ★ European Natural Gas Prices Slump 7%

European natural gas prices dropped 7% to €74 per megawatt-hour, the lowest level in two weeks, after details of Germany’s latest gas storage tenders revealed lower procurement volumes than initially anticipated. Trading Hub Europe has launched several tenders to secure adequate gas supplies for the first quarter of 2027, amid concerns about storage levels heading into winter. At the same time, weather forecasts point to a late-summer heatwave next week, with temperatures across Northwest Europe expected to run about 6°C above seasonal norms, potentially curbing gas demand. In addition, President Donald Trump indicated that US-Iran diplomatic talks could resume, including a possible meeting with Iran’s president during the UN General Assembly in New York. Any progress toward resolving tensions could ease worries about potential disruptions to energy flows through the Strait of Hormuz, a critical corridor for global LNG shipments.