European Gas Prices Plunge on Diplomatic Thaw

European natural gas prices continued their decline on Tuesday, reaching one-week lows as crude oil markets fell and diplomatic progress between Washington and Tehran reduced geopolitical tensions.

The Dutch front-month contract at the European hub dropped 1% by mid-afternoon to trade at its lowest level in over a week. Britain's equivalent wholesale gas contract followed suit, plummeting 1.5% as selling pressure persisted across regional energy desks for a second straight session.

Market sentiment was influenced by comments from U.S. President Donald Trump, who stated that Washington was engaged in 'good talks' with Iran and suggested there was a tangible chance for a diplomatic resolution to recent Middle East military friction.

However, Goldman Sachs analysts cautioned against overestimating the durability of the price drop, warning that near-term risks remain skewed to the upside due to low regional storage levels and sluggish recovery in Middle East LNG exports. They maintained their 60 EUR/MWh TTF forecast for the remainder of the third quarter.

Goldman Sachs noted that while a potential U.S.-Iran agreement could temporarily drag TTF prices below 50 euro/MWh, any initial price drop might prove unsustainable given the slow pace of recovery in Persian Gulf LNG export loadings.