European natural gas prices plunge over 8% on hopes for end to Iran war

European natural gas prices fell sharply on Friday, with the benchmark Dutch TTF contract dropping more than 8% to around €38.9 ($46) per megawatt-hour as of 1330GMT, as hopes for an end to the Iran war eased concerns over energy supply disruptions.

The selloff came after Iranian Foreign Minister Abbas Araghchi said passage for commercial vessels through the Strait of Hormuz was “completely open” during the remaining ceasefire period, while reports also pointed to progress in US-Iran talks on a possible framework to end the war.

Also, US President Donald Trump said on Friday that Iran has announced the opening of the Strait of Hormuz for full passage. “Iran has just announced that the Strait of Iran is fully open and ready for full passage. Thank you,” Trump wrote on his Truth Social platform.

Separately, Axios reported that the US and Iranian negotiators are discussing a three-page framework that could help end the conflict, with one proposal under discussion involving the release of $20 billion in frozen Iranian funds in exchange for Iran giving up its stockpile of enriched uranium, citing sources briefed on the talks.

The Strait of Hormuz is one of the world’s most important energy chokepoints, carrying about a fifth of global oil and LNG flows, and its disruption had fueled a steep risk premium across oil, gas and refined product markets in recent weeks.

The latest drop in European gas prices follows a period of extreme volatility that had raised the prices to multi-year highs, driven by fears of prolonged supply disruption, with policymakers and energy officials warning this week that a drawn-out closure of Hormuz could deepen shortages and keep energy costs elevated across Europe.