MOMBASA, March 19: The threat of war in Iraq cast a dark cloud over the weekly east African tea auction here Wednesday with exporters to the Gulf region apprehensive that combat could cut them off from important markets.

There are fears of huge losses already because thousands of tonnes of undelivered teas might not reach their destinations in the Middle East in time, said Jalal Balala, a businessman who exports tea to the Middle East and Gulf regions.

Egypt and Yemen, as well as Pakistan and Afghanistan, are big importers of Kenyan tea.

Balala said the first Gulf War in 1991 had badly disrupted trade between Kenya and the Gulf and Middle East regions.

Best BP1s sold at between $2.27 and and 2.35 per kilogram, while best Pekoe Fannings fetched between $2.06 and 2.12 a kilo.

Prices of secondary grades, such as Fannings, remained stable at last week levels, but rates for Brighter Dust 1s appreciated by 11 US cents to sell at between $2.11 and 2.20 a kilo. —AFP