European gas prices fell nearly 12.5 percent following news that the United States was close to signing a one-page memorandum of understanding with Tehran to end the war with Iran and seek more detailed nuclear negotiations.
June futures gas contracts at TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, closed yesterday at 46.92 euros per megawatt-hour.
Prices decreased by approximately 12.5 percent to 41.04 euros per megawatt-hour as of 14.11 Türkiye time today.
The decrease in prices was influenced by the news flow that the USA was close to signing a one-page memorandum of understanding with the Tehran administration in order to end the war with Iran and pave the way for more comprehensive nuclear negotiations.
According to Axios, based on sources familiar with the matter and some US officials who wish to remain anonymous, the Washington administration expects a response from Iran within 48 hours regarding the memorandum in question.
Two US officials, whose views were included in the news, stated that a definitive agreement has not yet been reached between the parties, but that the current situation is the closest point of agreement since the beginning of the war.
It was reported that the draft agreement envisages starting a 30-day negotiation process for a comprehensive agreement to end conflicts in the region, reopen the Strait of Hormuz, limit Iran’s nuclear program and lift US sanctions.
Sources stated that the talks in question could be held in Pakistan’s capital Islamabad or Geneva, Switzerland.
A US official claimed that during the 30-day negotiation period, the gradual lifting of the restrictions imposed by Iran on ship passage in the Strait of Hormuz and the naval blockade imposed by the USA were on the agenda.
Experts emphasize that the reduction of tension in the Strait of Hormuz, through which approximately 20 percent of the global liquefied natural gas (LNG) supply passes, is of critical importance, especially in the process of replenishing Europe’s pre-winter stocks.
