FX.co ★ European Gas Prices Hold Decline

European natural gas prices held steady at €42.8/MWh on Tuesday, after slumping more than 9% in the previous session to their lowest level since April, as markets awaited further details on a potential US-Iran agreement that could lead to the reopening of the Strait of Hormuz. The interim accord is scheduled to be signed in Switzerland on June 19, although the memorandum of understanding has not yet been made public. On Monday, President Donald Trump reiterated that the strategic waterway would be fully accessible by Friday and operate on a "toll-free" basis. The prospect of resumed maritime traffic through the strait has substantially eased fears of prolonged disruptions to oil and gas shipments from the Persian Gulf. Nonetheless, uncertainty persists over how quickly regional production can be restored, particularly in light of extensive damage at Qatar's Ras Laffan complex, the world's largest LNG export facility. At the same time, forecasts of hotter weather across Europe next week are expected to lift gas demand.