UK Natural Gas Prices Rise

UK natural gas futures rose toward 110 pence per therm on Wednesday, ending a two-day decline, following reports that President Donald Trump ordered aides to prepare for a sustained blockade of Iran. According to the report, Trump aims to maintain maximum pressure on Tehran until it accepts the key US demand to end all nuclear activities. This comes after Iran submitted a new proposal to the US to reopen the Strait of Hormuz and end the conflict, while postponing nuclear negotiations to a later stage. The vital shipping route remains largely closed, continuing to restrict flows of around one-fifth of global LNG supply. Meanwhile, softer demand from Asia helped ease pressure on European markets by reducing competition for LNG cargoes. In addition, National Gas said the UK is expected to have sufficient supply to meet summer demand and may even allow some exports to mainland Europe.

UK natural gas futures rose toward 111 pence per therm, hovering near their highest level in two weeks, as the Strait of Hormuz remained choked after US-Iran peace talks stalled. President Donald Trump canceled the US delegation’s planned trip to Pakistan over the weekend, while Iran said it would not negotiate under threat. Both sides continue to maintain a blockade of the Strait, making the key waterway nearly impassable. Meanwhile, reports indicated that Iran offered the US a new proposal to reopen the Strait and end the war, with nuclear negotiations pushed back to a later date. The conflict has disrupted about a fifth of global LNG supply, although weaker demand from Asia helped ease pressure on European buyers by reducing competition for cargoes. National Gas also said domestic gas stocks are expected to be sufficient to meet summer demand and may even allow some exports to mainland Europe.

UK natural gas futures climbed toward 113 pence per therm, extending their rebound from a seven-week low, as peace talks between the US and Iran talks stalled and the Strait of Hormuz remained closed. Reports indicated that Vice President JD Vance, who was expected to lead US negotiators if discussions continue, called off a planned trip to Pakistan after Iran said no final decision had been made regarding its participation. Meanwhile, President Donald Trump extended the ceasefire with Iran, saying the US would postpone further strikes to allow Tehran more time to submit a proposal aimed at ending the conflict. The near closure of Hormuz has disrupted about a fifth of global LNG supply, although weaker demand from Asia helped ease pressure on European buyers by reducing competition for cargoes. National Gas also said domestic gas stocks are expected to be sufficient to meet summer demand and may even allow some exports to mainland Europe.