European natural gas prices fall on Middle East de-escalation hopes

Still, with the world's second-largest liquefied natural gas (LNG) exporter Qatar having shut production and unable to ship stored LNG out of the region via the blocked Strait of Hormuz, the gas market remains constrained.

Usually, LNG supply into Europe peaks in March and April when demand in Asia is muted by milder weather, said Ben Samuel, energy markets analyst at brokerage Marex.

"But this year those volumes will be competed for tooth and nail, a contest that is likely to remain fierce until some kind of stability returns to the gulf region," he added.