LONDON, March 23 (Xinhua) -- European energy prices swung sharply on Monday, with oil and gas markets reversing course multiple times as shifting signals from the United States and Iran rapidly altered investor expectations and spilled over into equity markets.
In early trading, Brent crude rose above 113 U.S. dollars per barrel, extending gains to roughly 50 percent since the conflict began, as fears mounted over potential supply disruptions through the Strait of Hormuz, a key route for global oil shipments.
Prices then dropped sharply after U.S. President Donald Trump said he had held "very good and productive" talks with Iran and ordered a five-day delay on planned strikes against Iranian energy infrastructure. Brent crude fell more than 10 percent to below 100 dollars per barrel.
The decline proved short-lived. After Iran denied any negotiations and warned of retaliation against regional energy facilities, oil prices rebounded to around 105 dollars per barrel before easing again to near 101 dollars in afternoon trading.
European gas prices showed a similar pattern of volatility. Benchmark Dutch TTF futures rose to above 63 euros (73 U.S. dollars) per megawatt-hour in early trading. Following Trump's remarks, prices dropped to around 54 euros (62 dollars), before recovering to about 59 euros (68 dollars) after Iran's response. Prices later eased again to around 55 euros (63 dollars) in afternoon trading.
The sharp swings in energy markets fed directly into equities. Britain's FTSE 100 index fell more than 1.8 percent at one point, while Germany's DAX dropped over 2 percent in early trading. As energy prices retreated, losses narrowed and sentiment improved, with the FTSE 100 rising about 0.6 percent and the DAX gaining around 2.4 percent in afternoon trading.
Analysts said the day's volatility underscored the strong transmission from geopolitical developments to energy prices and financial markets. Rapid shifts in expectations over supply risks and diplomatic prospects continue to drive sharp price movements. Future price trends will depend on whether diplomatic efforts can ease tensions and restore stability to key energy supply routes. ■