European Energy Prices Fluctuate Amid Shifting US-Iran Signals

London (ANTARA) - European energy prices fluctuated sharply on Monday (23/3), with oil and gas markets experiencing multiple directional changes due to continuously shifting signals from the United States (US) and Iran, which quickly influenced investor expectations and spilled over into equity markets.

In early trading, Brent crude oil prices rose above $113 (US$1 = Rp16,990) per barrel, extending the total increase to around 50 per cent since the conflict began. This occurred amid growing concerns over potential supply disruptions through the Strait of Hormuz, a major route for global oil shipments.

Oil prices then plunged sharply after US President Donald Trump stated that he had held “very good and productive” talks with Iran, and ordered a five-day delay on plans to strike Iranian energy infrastructure.

Brent crude oil prices fell more than 10 per cent to below $100 per barrel. The decline did not last long.

After Iran denied any negotiations and warned of retaliation against regional energy facilities, oil prices rebounded to around $105 per barrel before falling again to near $101 per barrel in the afternoon trading session.

European gas prices showed a similar volatility pattern. Dutch TTF futures contracts, a benchmark, rose above €63 (1 euro = Rp19,411) or equivalent to $73 per megawatt-hour in early trading.

Following Trump’s statement, prices dropped to around €54 ($62), before rising again to about €59 ($68) after Iran’s response. Prices then fell again to around €55 ($63) in the afternoon trading session.

The sharp fluctuations in the energy markets had a direct impact on equities. The UK’s FTSE 100 index initially fell more than 1.8 per cent, while Germany’s DAX dropped over 2 per cent in early trading.

However, as energy prices stabilised, the declines eased and market sentiment improved, with the FTSE 100 rising around 0.6 per cent and the DAX strengthening by about 2.4 per cent in the afternoon session.

Analysts view the day’s volatility as demonstrating the significant influence of geopolitical developments on energy prices and financial markets. Rapid changes in expectations regarding supply risks and diplomatic prospects continue to trigger sharp price swings.

Looking ahead, price trends will heavily depend on whether diplomatic efforts can ease tensions and restore stability to key energy supply routes.