ISTANBUL

Global energy prices on Tuesday retreated below levels seen before Israel launched its offensive against Iran, following US President Donald Trump's announcement of a ceasefire between the two countries.

Brent crude oil and European natural gas prices have fluctuated since Israel launched its attack on Iran on June 13.

On June 12, a day before Israel launched its attack on Iran, Brent crude oil, the international benchmark, closed at $69.65 per barrel. Prices jumped to $76.31 on June 13 amid supply concerns but eased later in the day as the initial shock faded, settling at $73.67.

Prices remained volatile in the following days. Despite hostilities in the region, on June 16, Brent crude ended at $72.13 with no reported damage to energy infrastructure and indications from Tehran that it may resume nuclear negotiations.

The benchmark rebounded to $75.69 on June 17 after Trump called for the evacuation of Iran's capital, Tehran.

Prices climbed to $76.13 on June 18 as markets priced in ongoing risks to supply security and strategic oil routes in the region before settling at $75.12.

A week into the conflict, Brent crude rose to $77.52 before closing slightly lower at $77.32 on June 19. On June 20, the final trading day of the week, prices settled at $75.91.

Brent crude tested a five-month high of $77.81 on June 23 following US strikes on three Iranian nuclear sites but quickly reversed course, dropping 8.5% to $69.48 after Iran's retaliation attacks on US bases in Qatar and Iraq caused no casualties or significant damage.

Following Trump's announcement of a ceasefire between Israel and Iran, Brent crude returned to pre-conflict levels, closing at $66.86 per barrel on Tuesday, down 3.8% from the previous close. This level is also about 4% below the pre-conflict closing price of $69.65 on June 12.

- Gas prices fall from 3-month high after ceasefire announcement

European natural gas prices followed a similar trajectory. The gas price per megawatt-hour for the July futures contract on the TTF, the Netherlands-based virtual natural gas trading venue with the most depth in Europe, closed at €36.17 per megawatt-hour on June 12 and rose to €37.89 on June 13, the day of the strike.

Prices traded at €37.90 on June 16, climbed to €39.30 on June 17, and edged down to €38.69 on June 18.

On June 19, as tensions escalated and concerns mounted over potential US involvement in the conflict, natural gas prices hit €41.62 per megawatt-hour, the highest closing level since the start of the hostilities and the highest in Europe since March 31.

On June 20, prices fell to €40.92 and slipped further to €40.52 per megawatt-hour on June 23.

Following Trump's announcement of a ceasefire between Israel and Iran, gas prices decreased to €35.61 on Tuesday, down about 12% from the previous close. This level is also about 1.5% below the pre-conflict closing price of $36.17 on June 12.

Prices have been volatile amid concerns that the escalating conflict could lead to the closure of the Strait of Hormuz, a key route for about 30% of global seaborne crude oil and 20% of liquefied natural gas (LNG) trade.

Although the ceasefire between Israel and Iran has eased supply and demand concerns in global energy markets, fears persist that it could collapse at any moment.