EUROPE GAS-Prices edge up on renewed attacks and shipping concerns

Concerns grow about further constrained shipping flows

Geopolitical risks remain elevated

Supply and demand largely stable

By Nina Chestney

- Benchmark Dutch and British wholesale gas price rose on Wednesday morning after the U.S. military bombed targets across Iran for an 11th straight night and as concerns grew about further constrained shipping flows after a warning from Yemen's Iran-aligned Houthi militia.

The benchmark Dutch front-month contract at the TTF hub TFMBMc1 edged up by €0.89 to €60.55 euros per megawatt hour (MWh) by 0705 GMT, ICE data showed.

The British front-month contract NGLNMc1 rose by 2.17 pence to 145.74 pence per therm.

Yemen's Iran-aligned Houthi militia, in an email sent to shipping companies, warned them not to load or discharge cargo at Saudi Arabian ports and said such activity may result in being targeted "in any location".

A closure of the Red Sea's southern gateway would remove a critical alternative route for Saudi Arabia to the Strait of Hormuz and intensity fears of shortages. Three oil tankers loaded with Saudi crude for China and India made U-turns in the Red Sea on Tuesday.

U.S. Secretary of State Marco Rubio said on Wednesday the United States is still willing to negotiate an end to the Iran crisis but Tehran is not serious about talks.

A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire in efforts to salvage the interim ceasefire agreement signed by the U.S. and Iran in June, which replaced an earlier April ceasefire.

"Gas prices could come under further pressure if ceasefire speculation gains credibility. However, geopolitical risks remain elevated," said Wayne Bryan, head of European gas research at LSEG.

"With the supply-demand balance offering little directional signal, price action is likely to be driven by headlines from the Middle East, particularly any new developments or comments from President Trump or the IRGC," he added.

Total Norwegian exports are slightly lower at 324 million cubic metres (mcm) per day but expected to average around 325-330 mcm/day over the next five weeks. Liquefied natural gas send-out to north-west Europe is expected to increase today due to a cargo arrival at Germany's Wilhelmshaven terminal.

In the European carbon market, the benchmark contract CFI2Zc1 was up €0.51 at €83.71 per metric ton.