European natural gas prices have steadied after President Donald Trump ruled out a prolonged military campaign in the Middle East, reviving hopes for renewed talks on energy supplies from the region. The benchmark futures contract pulled back following a three-day surge of 10% that pushed prices to their highest level in over three years. Amid fresh conflict-driven energy price increases and mounting fears of an escalating war without limits, Trump said further strikes against Iran were unlikely to last long, while again asserting U.S. control over the Strait of Hormuz.

European gas contract prices remain more than double their pre-war levels, with the continent's gas storage at unusually low levels for this time of year, heightening concerns about intensified global competition for fuel during the colder months. As of August 31, EU gas storage stood at 65% full, compared to a five-year average of 82%.

Market watchers are now turning their attention to a meeting of the EU's gas coordination group scheduled for Thursday, where storage-related issues are set to be discussed. Meanwhile, supply disruptions persist, with Norway's Kollsnes gas processing plant and the large Troll field continuing to report additional output reductions.