EU Gas Price Tumbles on Hopes of Hormuz Strait Reopening
The wholesale price of natural gas for the European market dropped sharply by over six percent to below 69 euros per megawatt-hour (MWh), its lowest level since August 31. This decline is attributed to reports that Iran could quickly reopen the Strait of Hormuz in exchange for reduced US military pressure, according to Reuters.
The market's reaction was triggered by comments from an Iranian official stating that Iran could reopen the Strait within seven days if the United States eases its military pressure and lifts the blockade on Iranian ports. This comes after prices had already fallen on Monday due to renewed diplomatic efforts to ease Middle East tensions.
As of 14:00 CEST, the October delivery futures contract at the Title Transfer Facility (TTF) in the Netherlands was down 3.5 percent at 70.67 euros per MWh. Since the start of the week, gas prices have fallen by around 12 percent.