
UK natural gas prices dropped toward 97 pence a therm, nearing an over two-month low, as shipping activity through the Strait of Hormuz showed signs of normalization following progress in US-Iran peace talks. Three stranded crude oil supertankers successfully transited the waterway earlier this week, while several empty Qatari LNG carriers have entered the Gulf in recent weeks to reload, signaling a potential recovery in gas shipments. Additionally, Qatar’s Prime Minister indicated that LNG production is expected to return to normal within a few weeks, apart from the damaged facility. The prospect of resumed LNG flows from the Gulf eased fears of a supply crunch and could help Europe replenish inventories ahead of next winter. These developments offset support from strong power-sector demand amid hot weather and low wind speeds across Europe.

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