UK Natural Gas Futures Edge Up

UK natural gas futures dropped below 120 pence per therm but remained close to a six-week high, amid persistent uncertainty over the duration of supply disruptions in the Middle East. Diplomatic efforts for a peace deal between the US and Iran remained stalled, keeping tensions elevated around the Strait of Hormuz. Investors are closely monitoring shifting signals from President Donald Trump regarding fresh strikes against Tehran, which has raised concerns about a potential resumption of active hostilities. Roughly one-fifth of global LNG supply has been disrupted since the conflict began in late February, with the escalation also affecting key LNG production assets in Qatar. This has heightened concerns in Europe, as the region works to replenish gas storage ahead of next winter.

UK natural gas futures fell to around 121.7 pence per therm, retreating from a near six-week high, as concerns over supply disruptions eased after President Donald Trump postponed a planned strike on Iran. The delay followed appeals from Qatar, Saudi Arabia, and the UAE requested for more time to allow negotiations to continue. Reports also indicated that Iran has agreed to a long-term suspension of its nuclear program rather than a complete dismantling of its facilities. Roughly one-fifth of global LNG supply has been disrupted since the conflict began in late February, with the escalation also affecting key production assets in Qatar. This has heightened concerns in Europe, as the region works to replenish gas storage ahead of next winter.

UK natural gas futures rose further above 126 pence per therm, reaching a near six-week high, amid ongoing supply disruptions in the Persian Gulf. US-Iran negotiations remained deadlocked as both sides maintained a tough stance, keeping the Strait of Hormuz largely inaccessible. President Donald Trump warned Iran of possible consequences if a deal was not reached quickly, saying his patience was running out. A drone attack at a UAE nuclear facility over the weekend also highlighted the fragility of the ceasefire. Meanwhile, Trump and Chinese President Xi Jinping agreed that the strait should be open, though no concrete steps were taken to restore normal transit conditions. LNG shipments to Europe have been disrupted since the conflict began in late February, particularly after fighting spread to major production facilities in Qatar. The situation has heightened concerns across Europe as the region seeks to replenish gas storage ahead of next winter.