European Gas Prices Drop

(MENAFN) European natural gas costs dropped by more than 7%, falling beneath €50 ($58) per megawatt-hour on Wednesday, following earlier losses triggered by a steep war-induced surge earlier this month.

Across Europe, natural gas was trading around $58 per megawatt-hour as of 0830GMT on Wednesday, a decline from last week’s record peak of $78.

The downward movement came after reports emerged of new diplomatic efforts aimed at stabilizing the Middle East amid ongoing armed conflict and preventing potential disruptions in supply.

According to news outlets, the US is advocating for a ceasefire to enable negotiations, while the New York Times reported that Washington had presented Iran with a 15-point plan intended to resolve the crisis.

Additionally, US President Donald Trump mentioned that the Iranians had sent what he called a "gift" related to oil and natural gas, noting: "They (Iran) have agreed that they will never possess nuclear weapons."

Nonetheless, prices had surged over 60% since the Iran war began on Feb. 28, heightening worries about energy expenses and electricity costs across Europe.

Even with the recent decline, gas rates remain significantly above pre-escalation levels, highlighting the ongoing instability and volatility in European energy markets.

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