FX.co ★ TTF Prices Tumble 11%

European natural gas futures experienced a significant decline of over 11%, settling at €35.9 per megawatt-hour on Tuesday, marking their lowest point in more than a week. This drop followed the announcement by US President Donald Trump of a ceasefire agreement between Iran and Israel. According to Trump, Iran has agreed to commence the ceasefire immediately, with Israel set to follow suit 12 hours later. If both parties adhere to the agreement, the conflict is expected to officially conclude after 24 hours, bringing an end to 12 days of hostilities. This news alleviated concerns about a broader conflict potentially disrupting energy flows through the Strait of Hormuz, a crucial channel for about 20% of the global LNG trade. Concurrently, Europe is bracing for a heatwave, with temperatures predicted to soar to 40°C in Madrid, 36°C in Zagreb, and 33°C in Paris, which is likely to increase demand for cooling. In contrast, a low-pressure system is forecasted to bring colder, stormy weather to the Nordics and Eastern Europe, affecting regions such as Germany, Poland, and the Baltics.