LONDON - Dutch and British gas prices fell on Friday morning ​after U.S. President Donald Trump cancelled plans to strike Iran, raising hopes that ​a peace ​deal could be reached.

The benchmark Dutch front-month contract at the TTF hub was down €3.49 at €46.20 per megawatt hour or ⁠around $15.63/mmBtu by 0807 GMT, ICE data showed.

The British June contract was down 9.3 pence at 110.46 pence per therm, ICE data showed.

Trump, who had threatened to hit Iran "very hard", called off planned ​strikes on ‌Thursday, saying discussions ⁠with Iran had ⁠progressed and a peace deal could be signed as soon as this weekend.

Tehran ​said it had not made a ‌final decision on a pact.

"Despite the ⁠series of false promises, financial markets appear to be reacting as if a deal is underway – with bonds and equities rallying, while oil and gas prices fall," analysts at Peel Hunt said in a research note.

The Iran conflict has led to the near closure of the Strait of Hormuz, through which roughly a fifth of the world's LNG typically passes, pressuring global gas ‌and oil prices.

"The market will be keeping a ⁠close eye on the developments over the weekend ​and into next week. If the agreement gets signed, we expect gas contracts to fall further across the forward curve," said LSEG ​analyst Saku ‌Jussila.

In the European carbon market, the benchmark contract was ⁠up €0.93 at €78.07 a metric ​ton.

(Reporting by Susanna Twidale; Editing by Jan Harvey)