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FinanceEuropean natural gas prices plunge 8% as U.S.-Iran tensions ease
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European natural gas prices dropped 8.6% at the Amsterdam open on Monday after the United States paused strikes on Iran and Tehran signaled a halt to retaliatory attacks across the Middle East, raising hopes of de-escalation. The Dutch TTF Natural Gas Futures fell to $66.29 per MWh from Friday's multi-month high of over $73 per MWh. Oil prices also declined, with Brent Crude falling to $90 per barrel in Asian trade. The market anticipates a diplomatic push to reopen the Strait of Hormuz and restore Qatari LNG flows, which had been disrupted by Houthi blockades and renewed hostilities in mid-July. Despite the price retreat, Europe faces a critical gas storage deficit, heading for the second-lowest level in 15 years, and is racing to secure LNG supplies ahead of winter amid competition with Asia.
Source report
European natural gas prices dropped sharply on Monday, falling 8.6% at the open in Amsterdam, following a weekend pause in US strikes on Iran and a signal from Tehran to halt retaliatory attacks across the Middle East.
The prospect of de-escalation also weighed on oil prices in Asian trade on Monday, with Brent Crude falling to $90 per barrel.
Market Reaction
Europe's benchmark natural gas prices, which had surged over the past two weeks amid renewed hostilities, retreated from multi-month highs reached last week. The market is now hoping for a diplomatic push to reopen the Strait of Hormuz and facilitate the export of Qatar's LNG from the Persian Gulf.
The August 2026 contract of the Dutch TTF Natural Gas Futures slumped by as much as 8.58% to $66.29 (58.12 euros) per megawatt-hour (MWh) as of 6:46 a.m. Amsterdam time on Monday. This marks a significant decline from Friday's intraday high of over $73 (64 euros) per MWh.
Friday's price was the highest in the past year, driven by growing threats to energy flows in the Middle East, including the Houthi blockade of the Bab el-Mandeb Strait, which compounded the near-closure of the Strait of Hormuz.
Implications for Europe
While the weekend de-escalation is positive for Europe, risks remain. Until Qatari LNG flows recover, EU gas storage levels may fall behind the bloc's refill targets ahead of the next heating season.
The renewed hostilities in mid-July abruptly halted the recovery of Qatari LNG flows. It remains unclear when and how additional supply might emerge from the Middle East to relieve pressure on the LNG market, where Europe is losing the competition for supply to Asia.
Europe is currently heading for the second-lowest level of gas storage for this time of year in 15 years, well below the five-year average. This has triggered a race against time to secure LNG supplies for the winter.
By Tsvetana Paraskova for Oilprice.com
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European Natural Gas Prices Plunge 8% as U.S.-Iran Tensions Ease