FX.co ★ European Gas Tumbles After Trump Cancels Attack on Iran

European natural gas prices fell more than 4% to around €56 per MWh on the first trading day of August, after President Donald Trump canceled a planned weekend strike on Iran. Trump said Iran and other Middle Eastern countries had assured him they were working toward an agreement, and that negotiations are scheduled to begin on Monday.

The announcement eased market tensions after several days of escalating geopolitical risk that had driven energy prices sharply higher. European natural gas prices had surged 36% in July as the conflict intensified concerns about LNG supplies from the Gulf and Europe’s ability to rebuild gas stocks ahead of winter.

By the end of last month, European gas storage facilities were about 55% full—well below both the five-year average and last year’s level for the same period. Inventories remain behind the pace required to meet pre-winter storage targets before the heating season begins on November 1.