European natural gas prices plunged at opening on Monday after U.S. President Donald Trump said he had called off a planned attack on Iranian energy sites and talks on a deal would begin this week. Europe’s benchmark natural gas prices, the Dutch TTF Natural Gas Futures, sank by 4% at the start of trade on Monday, following the 5% slump in oil prices amid renewed hopes that the U.S. and Iran are looking for a return to diplomacy. However, natural gas prices eased their losses mid-day as Europe faces another heatwave that boosts electricity demand. While Europe’s own power woes are capping the downward pressure on the benchmark natural gas prices, renewed hopes for diplomacy in the U.S.-Iran conflict eased some concerns about the tight global LNG market. In the tight global LNG market, Europe is currently losing the competition with Asia for spot LNG supply as Asian demand and prices are higher than the European ones.