European natural gas prices fell more than 4% to below €64 per megawatt-hour on Wednesday, extending the previous session’s losses as diplomatic developments in the Middle East reduced concerns about an energy-supply squeeze. Pakistan said Tuesday it had made significant progress in talks with Tehran aimed at ending the war. Iran’s and Oman’s foreign ministers also discussed a temporary transit corridor through the Strait of Hormuz and plans to clear mines from the waterway. The US decision to return diplomats to the Middle East further eased fears of an escalation. Supply risks remain, however, because an ongoing maritime blockade is disrupting physical LNG (liquefied natural gas) flows from the Persian Gulf, with shipments from Qatar facing severe delays. Hot weather across Europe is increasing electricity demand for cooling and slowing seasonal gas storage injections.