European natural gas prices tumbled 8.5% Wednesday after reports of secret Iranian peace overtures, with the Dutch TTF benchmark falling to $49.695 per megawatt-hour. The sharp decline reversed earlier gains that had pushed prices to a three-year high amid escalating Middle East tensions.

The price drop followed a New York Times report that Iranian operatives had made contact with U.S. and Israeli officials to discuss ending the conflict. However, U.S. officials remain skeptical that either Tehran or the Trump administration are ready for negotiations, while Israeli officials have urged Washington to ignore the outreach entirely.

The Middle East conflict had driven prices higher as traders worried about potential disruptions to natural gas supplies through the Strait of Hormuz, where nearly a fifth of global gas flows. An Iranian attack on a Qatari facility earlier this week intensified these concerns, prompting Qatar to halt shipments temporarily.