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10.07.202601:40:33UTC+00European Gas Prices Retreat

European natural gas prices fell more than 2% to €49.1 per MWh on Friday, retreating from a one-month high amid reports that US-Iran negotiations are continuing despite recent military clashes. A US official reiterated Washington’s commitment to a diplomatic solution with Tehran, easing fears of a return to full-scale conflict that could again disrupt supplies from the Persian Gulf.

The pullback followed a surge of more than 12% over the previous three sessions, after the US launched fresh strikes on Iranian targets in response to attacks on vessels in the Strait of Hormuz. Iran retaliated by hitting US bases in the region over the past two nights. Although President Trump said the ceasefire was over, he indicated he would not block further talks.

Market participants remain focused on energy flows through the Strait of Hormuz, which accounts for around one-fifth of global oil and LNG trade. Any renewed disruption there could complicate Europe’s efforts to rebuild gas inventories ahead of the winter season.

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