European natural gas futures fell more than 8% to below €39 per megawatt-hour, their lowest level since February 27, after Iranian Foreign Minister Abbas Araghchi said the Strait of Hormuz remains fully open to commercial vessels during the ceasefire. The statement bolstered expectations that one of the most severe energy supply disruptions in recent history may be easing, reinforcing hopes of a broader de-escalation.
Araghchi’s comments followed earlier remarks from US President Donald Trump, who indicated that Iranian concessions could pave the way for a wider peace agreement, while stressing that a US naval blockade targeting Iran would remain in place until negotiations are fully concluded. The conflict had heavily disrupted global LNG trade, as the near closure of the Strait of Hormuz removed roughly one-fifth of global supply and drove Asian imports to multi-year lows, potentially easing competition for cargoes bound for Europe.
Additional downward pressure on prices came from milder weather and stronger wind power generation across parts of Europe, which curtailed gas demand.
