The TTF front-month contract fell sharply today, extending losses from the previous trading session, after reports that Iran has offered to reopen the strait of Hormuz within seven days, although reports followed denying this, which prompted a rebound in prices.
TTF prices on the Ice exchange fell sharply after European liquidity hit the market at around 09:00 GMT. The TTF front-month price fell to €68.71/MWh at 10:56 GMT, before recovering to €70.765/MWh at the time of writing, at 12:07 GMT. This compares with €73.41/MWh at Monday's close and an average of €79.60/MWh last week.
European gas prices had already fallen on Monday on continued profit-taking after last week's rally, and on US president Donald Trump's statement to Fox News on 20 September that he would "probably" be open to diplomatic talks with Iran.
A report from Japanese news outlet Kyodo News at 06:39 GMT that a senior Iranian official had conveyed an offer to reopen the strait of Hormuz to Washington through mediators — provided the US eased military pressure — drove the drop, traders told Argus. One trader added that a wave of stop-loss selling then pushed prices lower.
Reports that Iranian sources denied having offered to reopen the strait prompted a slight rebound, but prices held well below a day earlier.
Reopening the key waterway would be the first step towards restoring Qatari LNG exports to global markets, easing supply concerns in Europe as the region heads into the heating season with record-low gas stocks.
Iranian president Masoud Pezeshkian is in New York this week for the UN General Assembly, where Kyodo reported Tehran would look to work with mediator countries to progress towards an agreement.
