Traders await latest news on the Strait of Hormuz, European natural gas prices hold steady.

European natural gas prices fluctuated as traders awaited new developments on the Middle East ceasefire situation and the resumption of shipping through the Strait of Hormuz. Benchmark futures for November held near 70 euros per megawatt-hour. The contract fell 5% in the previous session, dropping to around a one-month low. The decline was partly driven by traders rolling positions to avoid risk, though some market participants believed Tuesday's drop was too large in the absence of fresh fundamental drivers. Shipping through the Strait of Hormuz has been nearly halted, disrupting about one-fifth of global natural gas flows, and Europe needs to compete with other buyers for LNG cargoes. Countries are rushing to replenish inventories before winter arrives, so natural gas prices need to stay at a certain elevated level to attract more LNG cargoes.