European natural gas prices dropped more than 7% to below €59 per MWh on Monday, pulling back from a four-month high as tensions in the Middle East eased following a halt in military strikes between the US and Iran. The US has stopped launching further attacks on Iran since late Friday after 13 consecutive nights of strikes, while Tehran said on Sunday that it had also suspended its retaliatory operations. The pause came as Iranian and Omani officials held talks on shipping through the Strait of Hormuz, raising hopes that the key energy transit route could avoid further disruptions. However, concerns over Europe’s gas supply security persisted due to relatively low storage levels and strong electricity demand driven by hot weather across the region. European gas storage facilities were currently 54.2% full, well below the 65% level recorded a year earlier, leaving the region vulnerable to potential winter supply shortages and price spikes.