World News: EU Gas Market Braces for U.S. Moves —— By Giulia Petroni

European natural-gas prices retreated after Democrats' victory in Tuesday's U.S. midterm elections, while traders wait to see whether President Trump will pursue diplomacy with Iran or resume strikes.

The Dutch TTF front-month contract, Europe's benchmark, fell 3.7% to 88.19 euros (about $98) a megawatt-hour in afternoon trading on Wednesday, reversing earlier gains.

Democrats won control of both chambers of the U.S. Congress, an outcome that could bring greater congressional scrutiny of Trump's foreign policy. Still, the new Congress won't take office until January, leaving the administration room to pursue its existing approach toward Iran in the coming weeks.

For gas traders, the bigger question is whether the Trump administration will order new strikes on Tehran or sit at the negotiating table. Another escalation could send prices sharply higher, pushing the European benchmark back above 100 euros a megawatt-hour, analysts said.

"The uncertainty remains how Iran will respond to an eventual resurgence of strikes and which energy infrastructure in the region will become a target as a result," said Florence Schmit, senior energy strategist at Rabobank. "But for now, it remains uncertain when and if such an attack will take place, especially as there are further Russia/Ukraine peace talks planned in Abu Dhabi on Nov. 10-11."

The stakes are high because shipping disruptions through the Strait of Hormuz have curbed exports from Qatar and the United Arab Emirates, most of which were bound for Asia. The loss of supplies has intensified competition between European and Asian buyers as both regions seek to secure fuel ahead of winter.

Gas prices remain below the peaks of the 2022 energy crisis but had climbed above 100 euros last week -- their highest levels since late December of that year -- before pulling back.

LNG exports from Qatar -- the world's second-largest LNG exporter -- are slowly recovering, according to data provider Kpler. The country shipped 2.3 million metric tons of LNG in October, about 35% of its pre-war monthly average and above the 1.6 million tons recorded in September.

Europe's position remains vulnerable heading into winter. The region's LNG imports were just 84% of their pre-war average in October, Kpler said, while European Union gas storage was only 74.6% full, well below the seasonal average, amid colder temperatures in Northwest Europe. Germany also missed its 70% storage refilling target.

The region faces more uncertainty from the EU's planned ban on Russian LNG imports from January 2027, which could complicate efforts to replenish supplies.

Imports of Russian LNG are set to be completely stopped by Jan. 1, with remaining pipeline gas imports ending no later than Nov. 1.

A cold snap, particularly if accompanied by weak wind generation that increases reliance on gas-fired power, could further tighten the market as Europe competes with Asia for available cargoes.

(END) Dow Jones Newswires

November 04, 2026 21:22 ET (02:22 GMT)