European gas prices plunge after US-Iran ceasefire
European natural gas prices fell sharply at the start of trading on Wednesday after a ceasefire agreement between the United States and Iran eased concerns over supply disruptions.
The benchmark Dutch TTF natural gas contract dropped about 20 percent to 42.5 euros, reversing earlier gains driven by fears of energy shortages.
Prices had surged in recent weeks as the conflict threatened shipments through the Strait of Hormuz, a vital route for global oil and gas supplies. The risk of prolonged disruption had pushed European energy markets higher.
The ceasefire, which includes a temporary reopening of key shipping routes, has reduced immediate pressure on supply and helped calm markets.
However, analysts warn that uncertainty remains. Since the truce is only temporary, any renewed tensions or failure in upcoming negotiations could trigger fresh volatility in energy prices.
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