European Gas Prices Drop 17% as US-Iran Ceasefire Opens Strait of Hormuz
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European natural gas prices in futures trading fell 17% on Wednesday following news of a temporary ceasefire between the United States and Iran. The two-week truce agreement came shortly before the expiration of an ultimatum issued by U.S. President Donald Trump and includes the reopening of the strategically vital Strait of Hormuz. The Strait of Hormuz is a critical shipping route through which approximately 20% of the world's oil and significant quantities of liquefied natural gas pass, making it essential for global energy supplies. Any disruption to shipping through the strait typically causes energy prices to spike due to supply concerns, while its reopening has the opposite effect on markets.