European wholesale natural gas prices dropped sharply at the start of the week as markets reacted to a sudden de-escalation in Middle East tensions.
The decline followed reports that US President Donald Trump has postponed planned military strikes against Iran, removing an immediate threat to regional energy infrastructure.
The TTF gas benchmark, which had been trading at elevated levels due to fears of a supply shock, reversed course as traders priced out the risk of a prolonged conflict.
The move mirrors a broader retreat in energy risk premiums, with crude oil also falling sharply on Monday as the prospect of a military pause signaled a significant cooling of hostilities that have persisted for nearly four months.
The delay in US military action provides a temporary reprieve for European energy markets, which have been volatile amid concerns over winter supply security.
However, the underlying geopolitical risk remains high, and prices could quickly reverse if diplomatic efforts fail to produce a lasting ceasefire.