European gas prices steady on U.S.-Iran peace deal
- Dutch front-month gas touched €41.95 per MWh, its lowest level since May 7
- Shippers said confidence in resuming Strait of Hormuz transit could take weeks to rebuild
- Market to remain cautious trading until Friday's Geneva signing ceremony
Dutch and British wholesale gas prices were steady on Tuesday morning after falling around 10% on Monday as the U.S. and Iran signed a preliminary deal to end the Iran war and reopen the Strait of Hormuz.
The benchmark Dutch front-month contract at the TTF hub inched down by €0.187 to €42.32/per megawatt hour (MWh), or around $14.361/MMBtu, by 0820 GMT, ICE data showed.
In early trade, the contract touched €41.95 MWh, its lowest level since May 7.
The British July contract was down 0.52 pence at 100.49 pence per therm, ICE data showed, having also fallen around 10% on Monday.
“Over the last three days of trading, the TTF front month gas future has fallen around 15%, but the market is still far above the levels from before the war. Uncertainty about the stability of the agreement is still high and the market is not in any way ready to remove all the risk premium,” analysts at Mind Energy said.
The Iran conflict led to the near closure of the Strait of Hormuz, through which roughly a fifth of the world's LNG typically passes, pressuring global gas and oil prices.
Shippers in Asia and Europe said confidence in resuming transit through waterway could take weeks to rebuild and navigation will only restart once safety is assured.
“This morning appears geopolitically calmer and with oil trading only marginally lower the (gas) market will probably be a bit more cautious until Friday,” LSEG analyst Ulrich Weber said in a daily research note.
U.S. President Donald Trump said, after he arrived in France for a summit of the G7 group of big economies, that Vice President JD Vance would attend a formal signing ceremony in Geneva on Friday.
In the European carbon market, the benchmark contract was down €0.05 at €79.97 a metric ton.
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