European Wholesale Gas Prices Continue to Fall Amid U.S.-Iran Deal Prospects

European wholesale natural gas prices continued to decline as a preliminary agreement between the United States and Iran is expected to be signed in Switzerland on Friday, June 19. The prospective deal, the details of which have not yet been made public — no memorandum of understanding has been released — is contributing to downward pressure on energy markets. A U.S.-Iran nuclear or diplomatic agreement would potentially ease sanctions on Iranian oil and gas exports, increasing global energy supply and reducing prices. Europe, which has been working to diversify its energy sources following reduced dependence on Russian gas since the war in Ukraine, is particularly sensitive to shifts in global energy markets.