UK Gas Hits 6-week Low

UK natural gas futures dropped toward 97 pence a therm, the lowest since February 27, after Iran’s Foreign Minister Abbas Araghchi said the Strait of Hormuz is fully open to commercial shipping during the ceasefire. The move fueled optimism that one of the most severe global energy supply disruptions may be nearing an end. The announcement followed earlier comments from President Donald Trump, who said Iranian concessions could lead to a broader peace deal, while noting the US naval blockade targeting Iran would remain until negotiations are finalized. The conflict had disrupted around a fifth of global LNG flows, though weaker Asian demand has eased pressure on European buyers. In addition, National Gas, the country's gas system operator, stated that domestic gas inventories are expected to be sufficient to meet summer demand and could even allow some gas to be exported to mainland Europe.

UK Gas decreased to 102.87 GBp/thm, the lowest since March 2026. Over the past 4 weeks, Natural Gas UK lost 25.76%, and in the last 12 months, it increased 19.34%.

UK natural gas futures fell toward 105 pence per therm, hovering near their lowest level in more than six weeks, as hopes grew for an end to the Middle East war. President Donald Trump voiced optimism that a peace agreement with Iran was within reach and announced that Lebanon and Israel had agreed to a 10-day ceasefire. These developments helped calm fears surrounding energy flows, particularly amid the ongoing closure of the Strait of Hormuz. Still, traders cautioned that supply risks have not fully disappeared and noted that the recent drop in prices was largely due to softer demand from Asia, which has eased competition for LNG cargoes. In addition, National Gas, the country's gas system operator, stated that domestic gas inventories are expected to be sufficient to meet summer demand and could even allow some gas to be exported to mainland Europe.