European natural gas prices have fallen to their lowest levels in 2025, nearing a 13-month low at around €31 per megawatt-hour ($10.6 per MMBtu), as diplomatic efforts intensify to end the conflict between Russia and Ukraine. These price declines come ahead of scheduled talks between former U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy, with Trump advocating for a peace deal that could involve Ukraine ceding territory and potentially easing sanctions on Russia. The prospect of a peace agreement has raised expectations of increased Russian gas supply to Europe, contributing to the downward pressure on gas prices. Concurrently, oil prices have also declined due to the anticipation of reduced conflict-related disruptions. European gas storage sites continue to fill steadily, supporting supply security amid the ongoing geopolitical developments. Year-to-date, European natural gas prices are down approximately 21%, reflecting market optimism about a diplomatic resolution to the Ukraine war.