ISTANBUL

European natural gas prices fell by over 7%, dropping below €50 ($58) per megawatt-hour on Wednesday, following recent losses due to a sharp war-driven rally earlier this month.

The natural gas prices across Europe traded at about $58 per megawatt-hour as of 0830GMT on Wednesday, down from the historic high of $78 last week.

Prices declined after reports surfaced regarding new negotiations to stabilize the Middle East amid the ongoing armed conflict, and prevent supply disruptions.

News reports claimed that the US is seeking a ceasefire to facilitate talks, while the New York Times reported that Washington had sent Iran a 15-point proposal to resolve the conflict.

Also, US President Donald Trump said the Iranians had sent what he described as a "gift" related to oil and natural gas, adding: "They (Iran) have agreed that they will never possess nuclear weapons."

Still, the prices had climbed more than 60% since the start of the Iran war on Feb. 28, reviving concerns over energy costs and power prices across the region.

Despite the latest pullback, gas prices remain well above levels seen before the recent escalation in regional tensions, underscoring continued volatility in European energy markets.