European natural gas drops more than 7% Monday to below 59 euros as Iran and Oman discuss the Strait of Hormuz

European natural gas prices fell more than 7 percent on Monday, 27 July 2026 (5 Mordad 1405), to below 59 euros per megawatt hour, pulling back from a four-month high. According to market data, the TTF benchmark stood at 58.54 euros the same day, down 7.28 percent from the previous session. The Dutch TTF hub contract is the benchmark for Europe's gas market.

The driver is the easing of military tension. The United States has launched no further operations against Iran since late Friday, 24 July, after 13 consecutive nights of strikes, and Tehran said on Sunday, 26 July, that it had suspended its retaliatory operations. The pause coincided with talks between Iranian and Omani officials on shipping through the Strait of Hormuz, raising hopes that further disruption to the key energy transit route could be avoided. The same benchmark had reached close to 63 euros on Friday.

Concerns over Europe's gas supply security nevertheless persist. European gas storage is 54.2 percent full, well below the 65 percent recorded a year earlier, and unusually hot weather has lifted electricity demand. For Iran, European gas prices have become one of the market's most precise gauges of Strait of Hormuz risk, on a waterway that also carries Iran's oil exports.