European natural gas prices eased to €98 per megawatt-hour on Thursday after reaching €100 in the previous session, the highest level since December 2022. The recent rally has been driven by rising heating demand, low gas reserves in Europe, and concerns about a renewed escalation in the Middle East conflict. Prices have more than tripled since the outbreak of the war, as disruptions to shipments through the Strait of Hormuz halted LNG deliveries from several sources, primarily Qatar. This has left the region scrambling for alternatives and hampered efforts to refill storage over the summer. European gas storage facilities were about 75% full as of October 28, significantly below historical levels. Meanwhile, forecasts of colder weather across northwestern Europe in the coming days could boost heating demand, while potential cold snaps in parts of Asia may further intensify competition for available cargoes.