European gas: TTF holds near EUR 100 amid Iran tensions - Commerzbank

A fall of up to 10% took European gas (TTF) prices from EUR 104 to EUR 93.5 per MWh yesterday, Commerzbank notes, as hopes of a diplomatic settlement to the Iran conflict eased the geopolitical risk premium. Prices have since recovered towards EUR 100 following renewed US strikes on Iran. With earlier peace initiatives having failed, the bank cautions that further military escalation could push gas prices above EUR 100.

TTF adjusts pricing as Iran conflict risks shift

"The European gas price fell by as much as 10% over the course of yesterday, from EUR 104 to EUR 93.5 per MWh."

"Renewed peace talks and hopes for a diplomatic solution have prompted the TTF gas market to partially price out these risks."

"However, caution is still warranted. There have been repeated reports of potential peace talks in the past, which ultimately failed to deliver results."

"Should Trump decide to launch another attack on Iran, gas prices would likely rise sharply again and could easily move back above the EUR 100 mark."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)