-- European natural gas futures were down on Wednesday, as optimism continued to build around a potential second round of US-Iran talks in the coming days, aimed at a diplomatic resolution to the ongoing military conflict.
The front-month Dutch TTF contract was down 1.69% to 42.63 euros ($50.24) per megawatt-hour, while UK NBP futures dropped 1.84% to 106.75 British pence ($1.43) per therm.
Speaking to Fox News on Tuesday, US President Donald Trump said that he views the war as being "very close to over," while adding that Tehran wants to make a deal "very badly."
Earlier in the day, Trump told the New York Post that the second round of US-Iran peace talks "could be happening over [the] next two days" in Pakistan's capital city.
Meanwhile, Admiral Brad Cooper, commander of US Centcom, has said that the naval blockade against Iran is now fully in effect, with US forces having "completely halted economic trade going into and out of Iran by sea," which he said accounts for 90% of the country's international trade.
The Strait of Hormuz saw a big uptick in traffic, with 17 vessels transiting through it over the past 24 hours, according to the Hormuz Strait Monitor.
Asian LNG buyers, which had emerged as key competitors to Europe amid Middle East disruptions, have seen imports drop to their lowest levels since 2020, ANZ senior commodity strategist Daniel Hynes said.
Hynes noted that Gail India and Indian Oil Corp haven't awarded any tenders for spot purchases of gas for April and May, while China's gas imports similarly fell in March.
These developments bode well for European markets as they step into the refilling season with significantly depleted inventories, at just 29.55% of capacity, compared to 35.62% during the corresponding period a year ago, according to Gas Infrastructure Europe.
Weather forecasts, too, have turned bearish, with most parts of Europe projected to experience above-normal temperatures during the Summer, according to Severe Weather EU.