EUROPE GAS-Prices fall over 10% on Iran-Israel ceasefire news

June 24 (Reuters) - Dutch and British wholesale front-month gas prices fell more than 10% on Tuesday morning on news that Iran and Israel have agreed a ceasefire, removing the risk premium the market had priced in for potential oil and gas supply disruptions.

The benchmark Dutch front-month contract at the TTF hub TRNLTTFMc1 fell by 4.61 euros to 36.63 euros per megawatt hour (MWh), or $12.41/mmBtu, by 0818 GMT, LSEG data showed.

The contract is trading at its lowest level since June 12, the day before the first Israeli strikes on Iran.

Tuesday's drop is all down to the news that Israel agreed to U.S. President Donald Trump's proposal for a ceasefire with Iran, a trader said.

"At the open today we have seen an incredible sigh of relief with more than 10% being eroded from the price levels," consultancy Auxilione wrote on its daily market report.

Still, any breach to the ceasefire by any party would likely immediately inject concerns back into the market, they cautioned.

Israel has said Iran has already violated the ceasefire and that it would respond.

Gas prices had been trading at 11-week highs before over concerns the hostilities could lead to a closure of the Strait of Hormuz, locking in around 20% of global liquefied natural gas (LNG) supply.

Oil prices are also sharply down on Tuesday. O/R

"Talk of a Hormuz Strait closure and broader war risk has completely faded for now," Arne Lohmann Rasmussen, chief analyst at GRM said.

Gas prices could slide even further to below levels seen before the conflict, reflecting continued high LNG supply and the need for some market participants to unwind long positions, a trader said.

Further in, the Dutch day-ahead contract TRNLTTFD1 plunged 5.25 euros to 35.92 euros/MWh, while the British day-ahead contract TRGBNBPD1 shed 10.75 pence to 84.00 pence per therm.

In the European carbon market, the benchmark contract CFI2Zc1 was up 0.31 euro at 73.58 euros a metric ton.