UK Gas Hits 3-year High

UK natural gas futures dropped 3% to 111.5 pence per therm, retreating from a four-week high amid hopes of a US-Iran peace agreement that could ease Hormuz disruptions. President Donald Trump said efforts to guide stranded vessels out of the strait would be temporarily paused as part of a push to secure a deal with Iran, but maintained restrictions on Iranian ports. Secretary of State Marco Rubio also stated that the ceasefire remains intact and that the initial US-Israeli offensive in Iran has ended. Meanwhile, Iran denied carrying out attacks in the UAE and warned it would retaliate if Abu Dhabi launches strikes on its territory. UK gas prices have surged more than 50% since the war began, as tighter supply heightened competition for cargoes, though they have eased from earlier peaks as demand from parts of Asia softened. Weather forecasts for May across Europe suggest volatility, with alternating storm systems and warmer spells likely to drive fluctuations in demand.

UK natural gas futures jumped 6% toward 117 pence per therm, reaching their highest level in four weeks, as tensions in the Middle East flared again. A fragile ceasefire between the US and Iran is under strain after both sides fired shots in the Strait of Hormuz, drawing in the UAE. The US said it struck seven Iranian fast boats in the strait and denied Iran’s claim that it had hit American warships. Meanwhile, the UAE said it intercepted multiple Iranian drones and missiles, and a fire broke out in Fujairah following an attack, marking the first reported Iranian-linked strike since a fragile ceasefire took hold in early April. Since the war began, UK gas prices have surged more than 50% as tighter supply heightened competition for cargoes, although prices have eased from earlier peaks due to softer demand from Asian buyers. Meanwhile, weather forecasts for May across Europe suggest volatility, with alternating storm systems and warmer spells likely to drive fluctuations in demand.

UK natural gas futures traded around 112 pence per therm, staying elevated after two weeks of gains driven by ongoing disruptions linked to the Middle East conflict. Donald Trump said the US would begin guiding neutral vessels through the Strait of Hormuz, which has been effectively closed since late February and has disrupted around a fifth of global LNG flows. However, traders remain cautious about the practicality of the plan following recent security incidents near Fujairah. UK gas prices are up about 40% since the conflict began as tighter supply increased competition for cargoes, although they have eased from earlier highs as some Asian buyers scaled back imports. Weather outlooks for May point to more volatile conditions across Europe, with alternating storms and warmer spells that could increase cooling demand.