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EMEA Natural Gas Update: Prices Slide as Hormuz Reopening Eases Supply Fears

-- European natural gas futures remained down in after-hours trading Friday, after an earlier sharp drop on word from both US President Donald Trump and Iranian officials that the Strait of Hormuz had reopened to commercial traffic.

The front-month Dutch TTF contract declined 8.03% to 39.015 euros ($46.04) per megawatt-hour, while UK NBP futures fell 7.432% to 98.40 British pence ($1.33) per therm.

Prices dipped below 39 euros/MWh, the lowest level since February, before the conflict in the Middle East began.

The sell-off followed comments from Iran's Foreign Minister Abbas Araghchi, who said the Strait of Hormuz remains fully open under current ceasefire conditions. The statement eased concerns about prolonged disruptions to one of the world's most critical energy transit routes and prompted traders to unwind risk premiums built up during the recent conflict.

Remarks from Trump also contributed to market sentiment, as he suggested Iranian concessions could support broader diplomatic progress, though he noted that a US naval blockade would remain in place until negotiations are complete.

At the peak of tensions, disruptions near the Strait of Hormuz affected roughly 20% of global LNG flows. The supply shock had pushed Asian import levels to multi-year lows, indirectly benefiting European buyers by reducing competition. With those risks now receding, traders are reassessing the supply outlook, Trading Economics said.

Prices were further pressured by weaker demand fundamentals. Unseasonably warm weather and stronger wind power generation across parts of Europe have reduced reliance on gas-fired electricity.

Lower prices may support inventory rebuilding ahead of winter as storage levels remain relatively low at 29.55% of capacity, compared with nearly 36% at the same time last year, according to Gas Infrastructure Europe.

Concerns about summer energy supply persist. In a Thursday social media post, Atmospheric G2 noted limited precipitation and low snowpack in the Alps, raising the risk of reduced hydroelectric output that could tighten power markets during periods of extreme heat or drought.

The US National Weather Service said on Apr. 9 that El Nino conditions are likely to develop by May-July 2026 and persist through the end of the year. Forecasters say this increases the chance of a hotter-than-normal summer, particularly across southern Europe, which could further influence energy demand and market volatility.

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