European gas prices started the day at 43.9 euros, decreasing by 17.5 percent compared to yesterday’s close, following the temporary ceasefire between the USA and Iran in the Middle East.
May futures gas contracts at TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, closed yesterday at 53.2 euros per megawatt-hour.
Prices decreased by 17.5 percent to 43.9 euros per megawatt-hour as of 09.12 Türkiye time today.
The sharp drop in European gas prices took place after US President Donald Trump announced that he had agreed to a 2-week mutual ceasefire with Iran on the condition that the Strait of Hormuz be fully opened.
While expectations for the opening of the Strait of Hormuz, through which 20 percent of the global liquefied natural gas trade is carried, caused gas prices to decline, the trade flow is not expected to return to normal in a short time despite the opening of the Strait.
Following the US and Israel’s attacks on Iran and Iran’s retaliation, Gulf countries Qatar and the United Arab Emirates suspended gas production. With its annual production of 80 million tons of liquefied natural gas (LNG), Qatar is among the important players of the global LNG market and the important suppliers of Europe.
