EUROPE GAS-European Gas Prices Fall on US-Iran Peace Deal Hopes
Dutch and British gas prices fall after Trump's cancellation of Iran strike
If agreement is signed, further declines are expected
Closure of the Strait of Hormuz affected global LNG transit and gas prices.
LONDON, 12 JUNE - Dutch and British gas prices dropped on Friday after U.S. president Donald Trump canceled plans to strike Iran. This raised hopes of a possible peace agreement.
ICE data showed that the benchmark Dutch front-month contract was EUR3.49 lower at EUR46.20 per Megawatt Hour or about $15.63/mmBtu as of 0807 GMT.
?ICE data revealed that the British June contract had dropped 9.3 pence to 110.46 pence a therm.
Trump, who threatened to hit Iran'very hard', called off planned attacks on?Thursday. He said that discussions with Iran have progressed, and a peace deal could be signed as soon as this weekend.
Tehran has said that it has not reached a final conclusion on the pact.
Peel Hunt analysts said that despite the false promises made, financial markets are reacting as though a deal was underway. Bonds and stocks have rallied, while oil and gas prices are falling.
The Iran conflict is causing the Strait of Hormuz to be closed, which affects the global oil and gas prices.
The market will keep a close watch on the developments this weekend and next week. "If the agreement is signed, we expect gas contracts to fall further along the forward?curve," LSEG analyst Saku jussila said.
The benchmark contract on the European carbon markets was EUR0.93 higher at EUR78.07 per metric ton. (Reporting and editing by Jan Harvey; Susanna Twiddale)
(source: Reuters)
