EUROPE GAS-European gas prices fall on hopes Iran war could end soon

LONDON, April 1 (Reuters) - Benchmark Dutch and British wholesale gas prices fell on Wednesday morning on hopes that the conflict in the Middle East could soon come to a conclusion following comments by U.S. President Donald Trump.

The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was down 3.466 euros at 48.32 euros per megawatt hour (MWh), or around $16.40/mmBtu, by 0755 GMT, ICE data showed.

The British April contract NGLNMc1 was down 6.7 pence at 121.4 pence per therm, ICE data showed.

Trump and his Secretary of State Marco Rubio said the end of the war in Iran could be near, with Washington signalling potential for both direct talks with Tehran's leadership and a winding down of the conflict even without a deal.

Roughly a fifth of the world's LNG typically passes through the Strait of Hormuz, but shipping through the narrow waterway has come to a near-standstill since the U.S. and Israel began strikes on Iran on February 28.

"Geopolitics is therefore likely to remain the dominant (price) driver," LSEG analyst Wayne Bryan said in a daily research note.

"We expect further downside in gas prices as geopolitical risk continues to unwind," he said.

Despite the fall, the benchmark EU gas contract remains almost 50% higher than the end of February and before the conflict began, and analysts at Engie EnergyScan said recent high prices had led to some profit-taking.

"Given the high price levels reached recently, some market participants must have thought that taking profits was a wise decision… even if it meant buying back later," they said in a daily market comment.

EU Energy Commissioner Dan Jorgensen on Tuesday warned member states to prepare for "prolonged disruption" to energy markets as a result of the Iran war and said it was considering reviving energy crisis measures it used in 2022 when Russia slashed gas deliveries.

Emergency policies introduced in 2022 included an EU-wide cap on gas prices, a tax on energy companies' windfall profits, and targets to curb gas demand.

In the European carbon market, the benchmark contract CFI2Zc1 was up 1.07 euro at 73.58 euros a metric ton.