European gas prices fell on Thursday to their lowest level in two months, following the signing of a provisional peace agreement between the US and Iran.
On the leading Dutch futures market, the price of a megawatt-hour of natural gas fell by 4.3% to €40.13. The gas price had already fallen by more than 10% this week.
An agreement between the US and Iran should pave the way for the reopening of the Strait of Hormuz, a key waterway for the supply of both crude oil and natural gas.
Europe is heavily reliant on supplies of liquefied natural gas (LNG) transported by tanker. Reopening the Strait could help replenish Europe’s natural gas reserves in time for next winter.
