Near EUR 100: Iran tensions underpin European TTF gas - Commerzbank

European gas (TTF) prices dropped by up to 10% yesterday, according to Commerzbank. Prices declined from EUR 104 to EUR 93.5 per MWh as optimism over a diplomatic resolution to the Iran conflict eased the geopolitical risk premium. Renewed US strikes on Iran have since lifted prices back towards EUR 100. With earlier peace initiatives having failed, the bank cautions that further military escalation could push gas prices above EUR 100.

10% Fall: TTF Reassesses Iran Conflict Risk

"The European gas price fell by as much as 10% over the course of yesterday, from EUR 104 to EUR 93.5 per MWh."

"Renewed peace talks and hopes for a diplomatic solution have prompted the TTF gas market to partially price out these risks."

"However, caution is still warranted. There have been repeated reports of potential peace talks in the past, which ultimately failed to deliver results."

"Should Trump decide to launch another attack on Iran, gas prices would likely rise sharply again and could easily move back above the EUR 100 mark."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Learn more.)