Dutch FM "welcomes" Iran ceasefire, if it holds; Economic consequences continue, he says

Minister Tom Berendsen of Economic Affairs “welcomes the ceasefire” between the United States and Iran, if it holds, he told NOS. But he stressed that even if the Strait of Hormuz opens immediately and stays open, the Netherlands will still feel the economic consequences of this war for some time yet.

“Naturally, together with European partners, we have consistently called for de-escalation and will see how things go over the next two weeks and whether the truce holds,” Berendsen said.

United States President Donald Trump agreed to suspend the bombing of Iran in exchange for Iran reopening the Strait of Hormuz, an important trading route for the global supply of oil and gas. In response to the announced ceasefire, the European gas price dropped by as much as 20 percent at the opening of trading on Wednesday morning, ANP reported. At the leading gas exchange in Amsterdam, natural gas traded at €43.70 per megawatt-hour shortly after the market opened, a drop of 18 percent and the lowest price since the start of the Iran war.

The opening of the Strait of Hormuz is crucial, also for the Dutch economy, Berendsen said. “We are seeing an enormous impact on prices here, but also on the security of supply in other parts of the world,” he told the broadcaster, but added: “We must be aware that if the Strait opens - even if it remains open - the global economy will still suffer in the coming months, and so will the Netherlands.”

Much remains unclear about the situation, including how and if the truce will hold and under what agreements, the Dutch Foreign Minister said. “And what does this mean for Iran’s position in the region and for broader security? Ultimately, I am also concerned about the future of the Iranian population.” The population of Iran is rarely mentioned in any of the action plans the parties involved are bandying about, he said.

The Dutch Cabinet is also deeply concerned about the humanitarian situation in Lebanon, Berendsen said. The ceasefire says it applies to the Middle East, but Israel insists that its attacks on Lebanon are excluded. “There, too, we call for a halt to hostilities as soon as possible.”

Unlike the trepidation felt by the Minister, the stock markets responded to news of the ceasefire with relief. The AEX-Index of the top 25 blue chip stocks traded on the Euronext Amsterdam exchange rose by nearly 3.1 percent in the first 15 minutes after the opening gong kicked off trading on Wednesday. The broader AEX All-Share index, which more broadly tracks the performance of the entire market, rose by nearly 3.7 percent.

Shell saw the sharpest drop at the start of the trading day. The oil and gas firm fell almost 7 percent to 38 euros. Vopak also stumbled about 5 percent, and SBM Offshore dropped over 3 percent in value.

Meanwhile, steel company Aperam was trading at 38.26 euros, almost 10 percent higher than Tuesday’s closing price. ASML also jumped over 8 percent to 1,206 euros per share.

Prosus, CVC Capital, and AMG all saw boosts of about 6 percent. ABN Amro, Randstad, and ING all showed share price gains of 5.2 to 5.5 percent.