By Anadolu Agency
May 6, 2026 8:15 pmEuropean natural gas prices fell approximately 12.5% on Wednesday following reports that the US is close to signing a one-page memorandum of understanding with Iran to end the war and facilitate more detailed nuclear negotiations.
The gas price per megawatt-hour for June futures contracts on the TTF, the Netherlands-based virtual natural gas trading venue with the most depth in Europe, closed Tuesday at €46.92 ($55.31).
Natural gas prices fell by 12.5% from the previous close to €41.04 as of 2.11 p.m. local time (1111 GMT).
Prices declined following renewed diplomatic signals from Washington and Tehran, boosting hopes that tensions around the Strait of Hormuz could ease after weeks of military escalation.
The US and Iran are reportedly close to reaching an agreement to end the war, Axios reported, citing sources.
Axios said Washington expects a response from Tehran on key issues within the next 48 hours.
Export capacity had declined due to damage to liquefied natural gas (LNG) facilities in the Middle East and disruptions to transit through the Strait, a key transit route for roughly 20% of global LNG supply.
Analysts emphasize that easing tensions in the Strait of Hormuz is critically important, particularly as Europe works to refill its storage ahead of winter.
European gas storage levels are currently around 34%, well below the five-year average, keeping traders cautious despite the improved diplomatic outlook.
The developments come after US President Donald Trump announced Tuesday that the US military would temporarily pause “Project Freedom, an operation aimed at securing commercial shipping in the Strait of Hormuz.
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