UK Natural Gas Surges 25%
2026-03-02 10:23
By
Andre Joaquim
1 min. read
Natural gas futures in the UK surged toby over 20% on toward the 100 pence per therm mark on Monday, tracking similar developments in global energy markets after the eruption of war in Iran threatened oil and gas supplies from the key region.
US forces struck Iranian territory in an attempt to force a regime change, prompting Tehran to retaliate by attacking allies across the Middle East.
Although strikes on natural gas infrastructure, including LNG export plants, have not been reported, LNG operators and shipping companies suspended key flows through the Strait of Hormuz.
The strait sees flows that account for one fifth of global LNG trade, including key exports from Qatar, which supplies about 15% of Europe's LNG imports.
Consequently, lower gas supplies from the region increase bidding competition by Europe for Norwegian gas flows to the UK.
Domestic gas inventories were less than 30% full as of the end of February, increasing the vulnerability to external supply shocks.