Europe’s benchmark natural gas contract fell around 5 percent on Wednesday afternoon after Iran said a draft US peace deal would lead to the reopening of shipping via the Strait of Hormuz.
Market Reaction
The benchmark Dutch front-month contract at the TTF hub fell as much as €2.69 to €44.79 per megawatt hour (MWh), according to ICE data. It traded slightly firmer again at €45.28/MWh by 1234 GMT.
Iran's Statement
Iran’s state TV said Tehran had obtained a draft of an initial unofficial framework for a memorandum of understanding with the United States under which Iran would restore commercial shipping through the Strait of Hormuz to pre-war levels.
The potential reopening of the strategic waterway, a key transit route for global oil and gas supplies, raised hopes of eased supply constraints that have driven European gas prices higher in recent weeks.
Analysts noted that while the news triggered a sharp price drop, the market remains cautious as details of the draft deal are still unconfirmed and geopolitical tensions persist.
