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EMEA Natural Gas Update: European Gas Futures Retreat as Iran Halts Strikes on Israel

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European natural gas futures retreated from highs hit earlier in the session on Monday after Iran reportedly agreed to halt its strikes on Israel following a major escalation over the last two days, which threatened diplomatic efforts to end the Iran war.

The Dutch TTF front-month contract was up 2.55% to 49.74 euros ($57.42) per megawatt-hour, while the UK NBP front-month contract gained 2.54% to 120.02 British pence ($1.60) per therm.

Both contracts had risen more than 5% in early trade amid concerns of prolonged disruption to energy supply flows after the exchange of strikes between Iran and Israel intensified tensions in the Middle East.

Dutch TTF futures hit a near three-week high of about 51.2 euros per MWh in early Monday trade, according to Trading Economics.

Iran on Monday said it is halting its attacks against Israel but warned of "much more severe and crushing actions" if the latter indulged in any acts of aggression or mischief including in southern Lebanon, according to multiple media reports, citing Iranian state media.

Earlier in the day, US President Donald Trump claimed that Iran and Israel were looking for an "immediate ceasefire" and indicated that things are moving quickly with regards to a peace deal.

"Both sides, Israel and Iran, are looking to do an immediate ceasefire! Final negotiations on 'peace' are proceeding, subject to ignorance or stupidity getting in its way," Trump said in a post on Truth Social.

"The blockade will remain in place, and in full force and effect, until a 'final deal' is reached. Things should move quickly," he added.

According to media reports, Israel said on Monday that Iran carried out a second round of missile strikes targeting its territory.

This follows Israeli strikes targeting sites in Tehran, Tabriz and Isfahan. On Sunday, Iran launched missiles at northern Israel in retaliation over the latter's attack on Beirut, Al Jazeera reported.

After the recent flatlining of prices with no significant developments in the Middle East conflict, front-month TTF futures gained on Monday following the intense fighting between Israel and Iran on Sunday and Monday, Mind Energy said in a note.

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