European natural gas prices have fallen sharply as optimism over a potential US-Iran agreement eases concerns about disruptions to global liquefied natural gas supplies, Anadolu reports.

Benchmark Dutch TTF futures, Europe’s main natural gas contract, dropped more than 8 per cent to below €43 ($50.6) per megawatt-hour.

The decline comes after reports that Washington and Tehran are close to a preliminary agreement that could end the conflict and open the door to broader nuclear negotiations.

The prospect of de-escalation reduces fears of prolonged disruption around the Strait of Hormuz, a critical route for global energy shipments.