European gas prices fall 6.2% in June as Middle East tensions ease

Average exchange-traded natural gas prices in Europe fell 6.2% in June compared with May, supported by easing geopolitical tensions following the signing of a memorandum between the United States and Iran and reports that shipping through the Strait of Hormuz had resumed.

According to data from the London-based ICE exchange, the average settlement price of front-month futures at the TTF hub in the Netherlands, Europe's largest gas trading hub, stood at $535.3 per 1,000 cubic meters in June.

Prices reached a monthly high of $613.4 per 1,000 cubic meters at the beginning of June before falling to a monthly low of $470.8 on June 25, following reports that maritime traffic in the Strait of Hormuz had resumed.

The memorandum signed by the United States and Iran on June 18 to end the Middle East conflict accelerated the decline in gas prices. In May, average European gas prices had risen 5% from April to $570.4 per 1,000 cubic meters, driven by heightened regional tensions, with prices remaining above levels seen over the previous year.

Gas prices began climbing on March 2, the first trading day after the United States and Israel launched strikes against Iran. During the conflict, prices peaked at $853.7 per 1,000 cubic meters on March 19 after Qatar, the world's largest liquefied natural gas (LNG) producer, sharply reduced production. That was the highest level recorded since early January 2023.