Iran Reopening Strait of Hormuz Sends European Natural Gas Prices Plummeting

European natural gas prices plummeted to a three-week low on Tuesday, falling below €70 per megawatt-hour. The decline comes after reports that Iran could reopen the Strait of Hormuz if the US lifts its blockade of Iranian ports.

The October contract at the Dutch-based Title Transfer Facility (TTF), Europe's benchmark natural gas trading hub, closed at €73.25 per megawatt-hour on Monday. However, prices dropped 5.6% from Monday's close to €69.15 by Tuesday afternoon.

According to Japan's Kyodo News Agency, Iran conveyed to Washington that it was prepared to reopen the Strait of Hormuz within seven days if the US lifted its naval blockade and returned to diplomacy. This proposal included a plan to resume negotiations aimed at achieving a lasting ceasefire between the two countries.