Iran Strait of Hormuz Reopening Proposal Sends European Gas Prices Tumbling
European natural gas prices have hit a three-week low after dropping below €70 per megawatt-hour. The decrease was attributed to reports that Iran could reopen the Strait of Hormuz if the US lifts its blockade of Iranian ports. This proposal, conveyed through mediators, also includes a plan for resuming negotiations towards a lasting ceasefire between the two countries.
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 fell 5.6% from Monday's close to €69.15 as of 1:59 p.m. local time (10:59 GMT) on Tuesday.
Natural gas storage facilities in European Union countries were found to be 69.94% full, which is below last year's 81.85%. Norway's natural gas exports remain constrained by maintenance work, with a capacity decline of around 20% through the end of September due to planned maintenance ahead of the winter demand season.