European Gas Stabilizes as US Extends Iran Ceasefire Amid Blockade

European natural gas benchmark futures have found a temporary equilibrium, trading near €42 per megawatt-hour. This stabilization follows a period of intense volatility driven by shifting geopolitical tensions between Washington and Tehran. The market is reacting to a complex set of signals from the US administration. President Donald Trump announced an indefinite extension of the ceasefire with Iran just before its scheduled expiration, providing a floor for cautious optimism across energy markets. Despite the ceasefire, the geopolitical risk remains elevated. The US has maintained its naval blockade of the Strait of Hormuz, a critical chokepoint for global energy supplies. This decision comes after planned peace negotiations between the two nations failed to materialize. Traders are currently balancing the relief of avoided immediate conflict against the long-term uncertainty of a persistent blockade. The stability in gas prices suggests a wait-and-see approach as the market assesses whether the ceasefire will lead to a broader diplomatic resolution or remain a fragile truce.