EUROPE GAS-European Gas Prices Rise as Hopes Fade on Quick End to Iran War

Standard Dutch and British wholesale prices for gas rose on Thursday morning, after U.S. president Donald Trump pledged'more aggressive strikes against Iran, without committing to any specific timeline to end the war, worrying investors who were worried about 'prolonged disruptions to global supply.

The benchmark Dutch front month contract at the TTF Hub opened 6.25% higher, at 50.48 Euros per Megawatt Hour (MWh), but then trimmed gains to 3.56%, at 49.20 Euros/MWh or around $16.62/mmBtu by 0853 GMT. ICE data revealed this.

Data from ICE showed that the British?April contract rose 3.57% to 124.98 pence/therm after opening?5.9% higher.

We're going?to hit them extremely hard in the next two to three weeks. We will bring them back into the Stone Ages, where they belong.

Trump also suggested that the war might escalate if Iranian leaders refused to?agree' with U.S. terms during negotiations. He said possible strikes against Iran's oil and energy infrastructure were possible.

Middle East developments are still the major swing factor. "The lack of clarity and timelines was not what the markets expected. Hopes of a quick reopening of Strait of Hormuz have been pushed back," said Wayne Bryan, principal of gas research at LSEG.

With Easter approaching, the risk sensitivity will likely remain elevated.

Approximately a?fifth of all LNG in the world passes through the Strait of?Hormuz. However, shipping through this narrow waterway is at a standstill after the U.S. began its strikes against?Iran.

Bryan stated that, from a fundamental standpoint, the?consumption of gas is expected to be notably lower on the day before, both for heating and power generation. Meanwhile,?storage injections have begun as?the?market enters?day two of the injection season.

The benchmark carbon contract in Europe was down by 0.86 euros at 73.78 euro per metric ton. (Reporting By Marwa Rashad; Editing by Subhranshu Sahu)

(source: Reuters)