Gas prices in Europe fell by 12% after US President Donald Trump announced a ceasefire between Israel and Iran.
The gas price per megawatt-hour for July futures contract on the TTF—the Netherlands-based virtual natural gas trading venue with the most depth in Europe—opened at €36.4 per megawatt-hour today, marking a 10.1% drop from yesterday's close of €40.5.
As prices continued to decline, they settled at €35.8 at 9 a.m. local time, trading 12% below yesterday's closing.
European gas prices have been volatile over the past two weeks, rising to €41.9 per megawatt-hour on June 19—the highest since early April—amid concerns that escalating conflict, sparked by Israeli strikes on Iran, could lead to the closure of the Strait of Hormuz and disrupt global LNG trade.
The Strait of Hormuz handles about 20% of global LNG trade. While the majority of shipments through the strait are destined for Asian markets, approximately 15% are directed to Europe.
Reporting by Nuran Erkul in London
Writing by Humeyra Ayaz
Anadolu Agency
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