European natural gas prices fell sharply after Iran signaled it would reopen the Strait of Hormuz to all commercial vessels, easing supply concerns.
Iranian Foreign Minister Abbas Erakchi said in a post on X that the strait would remain fully open to commercial shipping for the duration of the ceasefire in Lebanon.
"In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran," he said.
Following the announcement, the May-dated natural gas contract traded at the Netherlands-based virtual trading hub TTF fell 8.7% to €38.74 as of 4.19 p.m. local time (1319 GMT), compared to the previous close. The contracts had settled at €42.42 in the prior session.
Iran had previously restricted passage for vessels linked to the US, Israel and their allies during the conflict that began on Feb. 28 and paused under a temporary ceasefire on April 8.
Reporting by Duygu Alhan
Writing by Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
