European natural gas prices plunged 20 percent at the start of trading Wednesday in the wake of a two-week ceasefire agreed between the United States and Iran.
The Dutch TTF natural gas contract, considered the European benchmark, slumped to 42.5 euros, retreating from highs seen over fears of supply disruptions in the Gulf from the war.
The dollar fell around one percent against the euro and the pound in early European trading Wednesday as investors sold the greenback on relief over a temporary ceasefire.
Oil prices slid, stocks and bonds surged while the safe-haven dollar was knocked back on Wednesday, as a two-week Middle East ceasefire brought some relief to markets on hopes for a resumption of oil and gas flows through the Strait of Hormuz.
Market reaction was swift and dramatic, with U.S. crude futures CLc1 down around 15% to $96.31 a barrel, while Brent futures LCOc1 also slid 13% to $94.71 per barrel.
S&P 500 futures ESc1rose 2.5%, while European futures STXEc1leapt more than 5%. U.S. Treasuries rallied while futures for German bunds FGBLc1 and French OATs FOATc1 surged.
The U.S. dollar fell broadly, having been the haven of choice during the tumult. AFP/Reuters
