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EMEA Natural Gas Update: Futures Fall as Iran, Oman Agree on Strait of Hormuz Transit Corridor

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European natural gas futures fell in after-hours trading on Wednesday after Iran and Oman reached an agreement on control of the Strait of Hormuz, easing concerns over a further escalation of the conflict.

Front-month Dutch TTF futures fell 0.50% to 66.255 euros ($77.18) per megawatt-hour, while UK NBP futures declined 0.417% to 162.430 British pence ($2.21) per therm.

Futures eased after Iran and Oman reached an agreement on a temporary transit corridor through the Strait of Hormuz and on sharing revenues from the strategic waterway, according to the Oman News Agency's update on Tuesday.

Trading Economics said the foreign ministers of Iran and Oman also agreed on a project to clear mines from the waterway.

The US decision earlier in the week to return diplomats to the Middle East also helped ease fears of further escalation in the conflict, it said.

The lower prices could help fill inventories that are unusually low this close to winter.

European gas inventories stood at 63.28% of capacity, down from 75.99% in the same period a year ago, according to Gas Infrastructure Europe. Inventories were also significantly below the five-year average of 80.5% for the period, according to the Swiss Federal Office of Energy.

The Netherlands will fall short of its previously set Nov. 1 target to fill gas storage facilities to 115 terawatt-hours, or 83% of capacity, ahead of winter, Dutch gas operator Gasunie said on Wednesday.

Gasunie said injections had been insufficient over the past few weeks, with storage facilities currently around 45% full.

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