TTF Prices Slump 9% as Iran Talks Raise Hopes

European natural gas futures dropped more than 9% to €48.3 per megawatt-hour on Wednesday, following a nearly 60% surge over the prior two sessions, after reports that Iran may be willing to discuss ending the Middle East conflict that has shaken energy markets. While the offer raised hopes, US officials remain skeptical that either side is ready for a short-term resolution. The world’s largest LNG plant in Qatar remains offline, and the Strait of Hormuz is largely closed, stoking fears of a major supply shock. European supplies have not yet been directly affected, as shipments scheduled for March are already en route, but the continent remains vulnerable with storage levels low and large volumes needed to refill reserves this summer. Meanwhile, President Donald Trump said the US would ensure vessels and provide naval escorts if needed.

European natural gas futures rose more than 4% to above €56/MWh, extending their rally to hit an over three-year high. Prices have surged 60% over the past two days following the shutdown of Qatar's LNG facilities and the closure of the Strait of Hormuz amid rising tensions in the Middle East. Uncertainty over the timeline for restoring production at QatarEnergy’s Ras Laffan plant, the world's largest LNG export hub, has heightened fears of a supply shortfall, particularly as the Strait’s closure has also constrained shipments from other major producers in the region. Meanwhile, President Trump said on Tuesday that the US would insure and accompany ships passing through the Gulf if needed, though key details of this plan remain unclear. These ongoing disruptions are placing additional strain on Europe’s already depleted winter gas storage, raising concerns about summer restocking.

Natural Gas EU rose above 60, according to trading on a contract for difference (CFD).