European Gas Futures Tumble on US-Iran Ceasefire Agreement

European natural gas plunged after the US and Iran agreed to a two-week ceasefire that could temporarily reopen the vital Strait of Hormuz and ease strained global energy markets.

Benchmark futures dropped as much as 20%, the biggest daily decline in over two years. US President Donald Trump agreed to suspend bombing in exchange for Iran allowing safe passage through Hormuz. Tehran said that would be possible via coordination with the nation’s armed forces, though details of the deal weren’t announced.