UK Natural Gas Prices Jump

UK natural gas futures jumped nearly 9% to 119.4 pence per therm on Monday, recovering from a more than five-week low, as President Donald Trump ordered a blockade of the Strait of Hormuz after peace talks with Iran failed. The US military said it will begin a blockade of all Iranian ports at 1400 GMT on Monday but added that vessels not traveling to or from Iran will still be permitted to transit the strait. Trump also said the US will intercept vessels that have paid tolls to Iran for safe passage through the strait. Additionally, reports indicated that the US is considering fresh military strikes against Iran, which could jeopardize a two-week ceasefire reached last week. The developments have raised concerns that LNG flows through the strait, accounting for roughly one-fifth of global supply, could face prolonged disruption.

UK natural gas futures fell to around 113 pence per therm on Friday, retreating to a more than five-week low, as markets awaited planned US-Iran talks this weekend amid a shaky ceasefire. President Donald Trump said he was optimistic about reaching a deal to end the six-week conflict but later warned Tehran over charging transit fees for vessels passing through the Strait of Hormuz. Meanwhile, Qatar has reportedly begun preparations to restart LNG production at Ras Laffan following the ceasefire announcement. The facility has been offline since early March after being struck by Iranian missiles. While partial output could resume in the coming days, a full recovery remains contingent on safe passage through the Strait.

UK natural gas futures rose toward 118 pence per therm on Thursday after a more than 15% decline in the previous session, as the two-week ceasefire in the Middle East appeared to be in jeopardy following Israeli strikes on Lebanon. The latest attack prompted Iran to again halt shipping through the Strait of Hormuz, calling it a violation of the day-old ceasefire and kept up strikes on Gulf states. The situation is complicated by disagreements between Tehran and the US-Israeli side over whether the ceasefire terms extend to Lebanon. Meanwhile, Qatar is reportedly mobilizing engineers and workers to restart production at the world’s largest LNG export plant, which has been offline since early March after Iranian strikes cut significant capacity. Some output could resume in the coming days, but a return to substantial production would require safe passage for ships through the Strait.