-- European natural gas futures dipped in late trade Thursday following reports that Israel is seeking direct negotiations with Lebanon.
The front-month Dutch TTF contract fell 1.812% to 44.48 euros ($52.09) per megawatt-hour, while UK NBP futures lost 1.558% to 112.47 pence ($1.51) per therm.
Israeli Prime Minister Benjamin Netanyahu reportedly authorized direct talks with Lebanon in response to requests from Beirut, focusing on disarming Hezbollah and establishing peaceful relations between the neighbors. Netanyahu also welcomed Lebanon's call to demilitarize Beirut. There was no immediate comment from the Lebanese government, the Associated Press reported.
Earlier Thursday, prices had climbed amid fears that the fragile US-Iran ceasefire could unravel after renewed Israeli strikes on Lebanon. Iran has again blocked shipping through the Strait of Hormuz, calling the latest attacks on Lebanon a violation of the ceasefire, while continuing military actions targeting Gulf states. Conflicting interpretations persisted over whether Tuesday's ceasefire framework covers Israeli operations in Lebanon.
Meanwhile, European gas storage continued to rise ahead of next winter but remains below year-ago levels. EU storage reached 28.77% of capacity, compared with nearly 35% at the same time in 2025, Gas Infrastructure Europe reported Thursday.
Challenges to refilling European storage remain as the conflict in the Middle East has already changed much of the world energy infrastructure. Liquidity Energy reported that Susannah Streeter, chief investment strategist at Wealth Club, said that even with resumed shipments through the Strait, risks remain elevated. Tankers would still face mined waters and heightened military activity, keeping insurance premiums and freight costs high.