EUROPE GAS-European prices firm on latest US-Iran peace setback

Dutch and British gas contracts were firmed up on Monday, despite the fact that another attempt to end the 'U.S.-Israeli war against Iran' failed. The first Qatari LNG tanker was sailing through the Strait of Hormuz on its way to Pakistan.

Data from the Intercontinental Exchange showed that the benchmark Dutch front-month contract for the TTF hub had increased by 0.68 euros to 44.83 Euro per megawatt hour at 0744 GMT.

The British contract was 1.39 pence higher at 109.73 cents per therm.

In a morning report, Arne Lohmann-Rasmussen, Global Risk Management's chief analyst, stated that the increase in TTF gas had been "modest", but there is still a risk of an upward movement.

After U.S. president Donald Trump rejected Iran's response?to a U.S. Peace proposal on?Sunday, shipping through the Strait of Hormuz was paralysed.

Analysts at SEB stated in a daily report that "the announcement made last night does not give any indication of what is going on now."

While optimism about an imminent agreement is fading, an analyst from ING Research stated that there was still a glimmer hope that the talks between Trump and Xi this week might yield positive results regarding Iran.

The Al Kharaitiyat tanker has sailed from Qatar to Port Qasim, Pakistan through the Strait of Hormuz. This is the first shipment of Qatari LNG in Pakistan since the beginning of the war.

According to two people who are familiar with the situation, Iran has approved and may agree to additional deliveries in order to alleviate the gas shortage in Pakistan.

Ulrich Weber, LSEG analyst, stated that the Mihzem tanker is?also promoting Bin Qasim in Pakistan as a 'destination.

"Of course, this is both a positive development and a negative one," he said.

The benchmark contract on the European carbon markets was down by 0.41 euros at 74.77 euro per metric ton. (Reporting and editing by Janane Vekatraman; Nora Buli)

(source: Reuters)