European natural gas prices fell below €65 per megawatt-hour on Friday but stayed close to their highest level since January 2023, with prices up more than 5% this week. The stalemate in the US-Iran conflict and continued clashes over the Strait of Hormuz have clouded the outlook for Gulf LNG (liquefied natural gas) supplies as the conflict enters a new phase of economic pressure. A maritime blockade has stranded Qatari LNG cargoes, forcing European utilities to compete more intensely and at higher cost with Asian buyers for available shipments. Heatwave-driven cooling demand is also slowing injections into storage. European storage stands at 62%, the lowest seasonal level in records dating back to 2009, leaving limited time to rebuild inventories before the heating season. The European Commission said supplies in the bloc are not immediately at risk.