Dutch and British wholesale gas prices continued to fall on Tuesday morning, after shedding around nine per cent on Monday, as the pause in attacks between the United States and Iran led to hopes for a resolution to the war.
The benchmark Dutch front-month contract at the TTF hub was down €1.313 at €56.94/per megawatt hour (MWh) or around $16.69/mmBtu, by 08:19 GMT, ICE data showed. The contract had already fallen around nine per cent on Monday after the US and Iran paused strikes over the weekend.
The contract still remains some 75 per cent higher than before the conflict between the US and Iran started at the end of February, which has restricted shipping through the Strait of Hormuz, through which roughly a fifth of the world's LNG typically passes.
“If some form of a pause or de-escalation is more likely, then 3Q26 prices should average around €46/MWh ($15.5/mmBtu) for TTF,” analysts at Citi said.
The British front-month contract was down 3.78p at 136.98p per therm. US President Donald Trump said on Monday that Washington was having "good talks" with Iran and that there was the chance of a resolution. However, he said US strikes would resume if negotiations failed while Iran issued similar comments about retaliation.
Analysts at Engie EnergyScan said the market is in “a 'wait-and-see' zone, pending developments in the Middle East.”
Fundamentally, gas demand from the power sector is strong amid low wind power output and supply is stable with total Norwegian export nominations flat at 325 million cubic metres/day, LSEG data showed.
(Reporting By Susanna Twidale; editing by Nina Chestney)