Europe Gas-Prices extend decline on hopes for US-Iran deal

Market fundamentals remain stable, with temperatures across north-west Europe comfortably above normal levels.

EU gas storage sites were last 57.66% full, a historic low for the time of year, Gas Infrastructure Europe data showed.

Meanwhile, Asian buyers have been active in the spot market to buy additional LNG cargoes amid strong demand and supply shortages.

In the European carbon market, the benchmark contract was up €0.02 at €81.36 per metric ton.

"Easing geopolitical tensions drove a further decline (in prices)...Risks remain as previous negotiations have come close to a resolution without delivering a lasting agreement," said Wayne Bryan, director of European gas research at LSEG.

"Our outlook for today is for range-bound price action following the sharp decline seen yesterday, although some modest upside correction cannot be ruled out," he said.

U.S. President Donald Trump said his administration had "very good discussions" with Iran during all-day negotiations on Tuesday, fuelling expectations of an imminent end to the five-month conflict.

Meanwhile, a senior Iranian source said Iran is seeking full control over inbound shipping through the strait, and visibility over outbound traffic, with the ability to intervene if necessary.

Giving Iran such control would be a major shift in the regional balance of power in Tehran's favour, and make it more difficult for the U.S. administration to argue that its attack on Iran which Trump launched alongside Israel in February, had weakened Iran.