EUROPE GAS-European gas prices fall as Iran says Hormuz open, hopes of peace talks rise

LONDON, April 17 (Reuters) - Dutch and British wholesale gas prices fell on Friday afternoon, tracking crude oil, after Iran said passage for commercial vessels through the Strait of Hormuz was open and on hopes of further peace talks between Washington and Tehran.

The benchmark Dutch front-month contract at the TTF hub TFMBMc1 fell nearly 9%, or 3.722 euros, to 38.70 euros per megawatt hour (MWh) or around $13.40 /mmBtu, by 1533 GMT, ICE data showed.

The contract touched a low of 38.15 euros/MWh in afternoon trading, its lowest level since March 2.

The British front-month contract NGLNMc1 fell by 8.6% or 9.18 pence to 97.05 pence per therm.

Iranian Foreign Minister Abbas Araqchi said the Strait of Hormuz was open following the Lebanon ceasefire agreement.

Roughly a fifth of the world's liquefied natural gas typically transits 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 against Iran on February 28.

"The number of vessels entering the Strait may not return to pre-war norms yet, but it does offer an opportunity for trapped tankers to leave," said Kieran Tompkins, senior climate and commodities economist at Capital Economics.

Meanwhile, U.S. President Donald Trump said a deal to end the war in Iran could be reached soon, although the timing remained unclear.

Oil prices plunged by about 13% on Friday, which was bearish for gas prices as many LNG and pipeline gas contracts are indexed to oil prices.

In the European carbon market, the benchmark contract CFI2Zc1 rose by 2.01 euros to 77 euros per metric ton.