BAKU, Azerbaijan, July 2. European wholesale gas prices remained broadly stable on Wednesday as signs of progress in indirect talks between the United States and Iran helped ease concerns over energy supplies through the Strait of Hormuz.
Dutch and British gas markets showed limited movement after Qatar announced that Washington and Tehran had made progress in negotiations. At the same time, relatively low gas storage levels across Europe continued to provide underlying support to prices.
Wayne Bryan, head of gas research at LSEG, said market movements are expected to be driven primarily by supply and demand fundamentals, although investors remain highly sensitive to any developments related to the US-Iran negotiations.
Oil prices have also declined to their lowest levels since the beginning of the US-Israel war against Iran, reflecting growing optimism that the two sides could eventually reach a permanent peace agreement.
Meanwhile, shipping activity through the Strait of Hormuz has shown early signs of recovery after falling sharply following attacks on two commercial vessels last week. The strategic waterway handles around one-fifth of global oil and liquefied natural gas trade.
