European gas prices fell sharply on Wednesday morning at the start of trading. Traders appeared to react with relief to a ceasefire between Iran and the United States. This raised hopes that the Strait of Hormuz may soon reopen and allow gas deliveries from the Gulf states to resume.
At Amsterdam’s main gas exchange, natural gas was trading at 43.70 euros per megawatt-hour shortly after markets opened. This marked a decline of about 18 per cent, bringing prices to their lowest level since the start of the Iran-Iraq War.
US President Donald Trump has agreed to suspend air strikes on Iran in exchange for the reopening of the Strait of Hormuz. However, many details of the agreement remain unclear.
The waterway, which normally carries around one-fifth of global oil and liquefied natural gas (LNG) shipments, was almost completely closed in recent weeks. The disruption triggered a global energy crisis and drove up energy and fuel prices.
@anp | NEWS BRAINPORT
