European natural gas prices dropped to their lowest levels in two weeks as traders reacted to the outcome of the US midterm elections. The results raised hopes for a resolution to the Iran war, which has been a key factor in global energy supplies. Benchmark futures initially fell as much as 5% before stabilizing, following a three-day decline that erased more than 15% of their value.
The Democratic Party's victory in both chambers of Congress is expected to limit President Donald Trump's ability to escalate the conflict. This shift in political power could influence energy markets by potentially easing tensions in the Middle East and stabilizing supply routes.
Traders are closely watching how the new political landscape might affect energy policies and geopolitical risks. The uncertainty has contributed to the recent volatility in natural gas prices, with investors seeking clarity on future supply and demand dynamics.