European natural gas prices extended their decline, falling to €80/MWh, their lowest level in a month, amid growing hopes for a diplomatic resolution to the Middle East conflict. President Donald Trump said on Monday that there was “positive momentum” toward ending the conflict and that the war was effectively over militarily. European gas prices remain more than double their pre-conflict levels, as disruptions to Gulf LNG exports, which accounted for around a fifth of global supply, leaves the gas market tight market ahead of winter. EU gas storage is below 73%, well below the five-year seasonal average of 90%, while Germany’s inventories are below 60%. Colder weather, along with low wind and solar generation, has accelerated storage withdrawals, while Norwegian pipeline flows have remained below capacity due to unplanned outages. The tight supply situation has raised the prospect of intense competition with Asia for cargoes.