Calm in the energy market; European gas prices drop sharply after Iran-US ceasefire

Afghan Voice Agency (AVA): European market gas index futures prices fell by up to 20 percent, the largest daily decline in more than two years. This decline occurred after Iran and the US agreed to a two-week ceasefire. After the American-Zionist invasion of Iran on February 28, passage through the Strait of Hormuz had almost stopped, and the disruption of this route, through which one-fifth of the world's oil and liquefied natural gas usually flows, has triggered a global energy crisis and sharply increased fuel prices.

Sudden shifts in positioning by hedge funds and other speculators have exacerbated European gas volatility, with net long bets piling up before the ceasefire agreement. Meanwhile, physical traders may remain cautious and wait for clearer signs of compliance.

Next-month Dutch futures, the benchmark for European gas prices, were down 18 percent at 43.70 euros per megawatt-hour by 8 a.m. in Amsterdam.

Meanwhile, traders said liquefied natural gas (LNG) prices in Asia fell nearly 17 percent to around $15 per mBtu after the U.S. and Iran agreed to a two-week ceasefire that could temporarily reopen the Strait of Hormuz, according to Bloomberg.