European natural gas prices fell modestly on Wednesday amid reports that a limited number of tankers had been allowed to pass through the Strait of Hormuz.
By 09:39 ET (13:39 GMT), the Dutch front-month contract at the TTF hub - the European benchmark - was down 0.6% at 46.440 euros per megawatt hour, according to Intercontinental Exchange data.
Shipments and the Strait of Hormuz
Reuters reported that two tankers carrying Qatari liquefied natural gas were en route to Pakistan after having bypassed the narrow waterway off Iran's southern coast in recent days. The reports said Iran and Pakistan had struck a bilateral energy deal, which the coverage described as a potential indicator of Tehran's control over the strait. The suggestion that some shipments have been allowed to transit was cited in market commentary as one factor weighing on short-term European gas prices.
European storage and supply context
Gas storage facilities in Europe were reported at 35.6% full, Reuters said, compared with roughly 42.8% at the same point last year. Storage levels remain below those seen during the energy crisis in 2022, a backdrop that market participants continue to monitor given its implications for supply resilience and seasonal demand.
Diplomacy, China visit and market focus
Attention also turned to Beijing, where President Donald Trump is scheduled to meet Chinese President Xi Jinping this week. The leaders are expected to discuss a range of issues, including trade and Taiwan. Trump said he would press Xi to "open up" China to U.S. businesses and announced that Nvidia CEO Jensen Huang will join a group of corporate executives travelling with the president.
Analysts noted that the U.S.-Iran confrontation could draw significant attention at the talks. Some suggested China - as a major importer of Iranian crude - might be asked to act as a guarantor of any durable peace arrangement, though the article noted that some observers have lowered expectations that such a breakthrough will emerge from the meeting.
Stalled diplomacy and tensions
Diplomatic efforts to broker an agreement between Washington and Tehran appeared to have stalled. The report said that earlier in the week President Trump dismissed an Iranian response to an American peace proposal as "unacceptable" and a "piece of garbage." Media accounts also circulated about whether the White House would resume strikes against Iran. Tehran, for its part, has not indicated further plans to appease the U.S. president.