European gas prices fall 10.5% weekly

European natural gas prices fell 10.5% on the week as market participants pointed to US‑Iran talks in New York that strengthened expectations supply risks through the Strait of Hormuz could ease and as pre‑winter seasonal demand remained muted.

New York talks ease Strait of Hormuz risk

Market participants said the discussions in New York this week helped reduce a premium traders had attached to potential disruptions in shipments from the Gulf, pressuring spot and near‑term futures. Traders cited the talks alongside softer demand for space in storage as reasons for the slide in benchmark European hubs.

Market participants said seasonal demand patterns were a second factor, with buyers postponing purchases ahead of winter and keeping prompt demand subdued. That dynamic left the market more sensitive to diplomatic developments than to immediate supply shocks, participants added.

Price move and market mechanics

Data showed the decline concentrated in front‑month contracts and prompt cargoes rather than in longer‑dated hedges, signalling a near‑term rebalancing rather than an expectation of structurally lower winter demand. Liquefied natural gas shipping and cargo scheduling were described by traders as responding to the lower risk premium.

Markets will watch whether the New York talks yield formal statements or confirmatory measures by Sept. 30, 2026; any clear diplomatic outcome by that date would be likely to influence European prompt pricing and LNG cargo routing.