Gas prices in Europe fall after Trump announces US withdrawal from Iran War
The benchmark Dutch and British wholesale gasoline prices dropped 'on Wednesday afternoon, after U.S. president Donald Trump said the United States would end their war against Iran 'fairly soon. But could return for "spot strikes" if necessary.
ICE data revealed that the benchmark Dutch front-month contract for TTF hub had fallen 6.81% to 47.30 euros (MWh) or $16.16/mmBtu by 1612 GMT.
ICE data showed that the British April contract had fallen by 6.57% to 119.69 pence/therm.
When asked when the United States will consider the Iran War over, Trump replied: "I can't tell exactly... but we'll be out pretty soon."
Trump said that he would also?state in an address to the nation at primetime, scheduled for 9 p.m. Eastern Daylight Time on Wednesday (0100 GMT Thursday)?that he is considering withdrawing?the?U.S. Trump also said he?would state in a primetime address to the nation, which is due at 9 p.m. EDT on?Wednesday (0100 GMT on Thursday), that he was considering withdrawing the?U.S.
Around?a fifth of all LNG in the world passes through the Strait of Hormuz. However, shipping has been at a standstill through this narrow waterway since U.S. and Israeli strikes began on Iran on 28 February.
In a daily research report, LSEG analyst Wayne Bryan stated that "geopolitics will likely remain the dominant (price) factor."
He said that he expects gas prices to continue falling as the geopolitical risks continue to dissipate.
EU Energy Commissioner Dan Jorgensen warned member states on Tuesday to prepare for a "prolonged disruption" of energy markets due to the Iran War and said it was considering revisiting energy crisis measures that it used in 2022, when Russia cut gas deliveries.
In 2022, emergency policies were introduced that included a cap on gas prices across the EU, a tax on windfall profits of energy companies, and 'targets to reduce gas demand.
The benchmark contract on the European carbon markets was up 2.07 euros, at 74.58 euro per metric ton. (Reporting by Marwa Rashad, Editing by Joe Bavier.)
(source: Reuters)