UK Natural Gas Prices Jump on Renewed Middle East Tensions

2026-05-05 06:57 By Judith Sib-at 1 min. read

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.



News Stream
UK Gas Prices Advance
UK natural gas prices rose above 105 pence a therm, reaching a three-week high, as increased consumption due to heatwave offset some of the relief from the reopening of the Strait of Hormuz. Extreme heat continues to bear down on Europe, sharply increasing electricity demand for air conditioning. This comes at a time when inventory levels are low. The region is struggling to replenish inventories following earlier supply disruptions, with storage facilities currently around 48% full, well below the 56% level recorded a year ago and the five-year average of 61%. Meanwhile, Qatar and Pakistan confirmed that the US and Iran made positive progress during indirect talks in Doha, signaling that diplomacy was holding despite recent hostilities. UK gas prices have risen more than 7% so far this week, on track for the first weekly advance in four.
2026-07-02
UK Gas Prices Decline
UK natural gas prices dropped toward 102 pence a therm on the first day of July, retreating from an over two-week high, as signs of progress in US-Iran talks eased supply concerns. Qatar's Foreign Ministry said late Wednesday that mediators had concluded separate positive meetings and that all parties had agreed to continue discussions in the coming period. The talks came after recent exchanges of fire that threatened to derail the negotiations. UK gas prices fell 5.7% in June and plunged 18.5% in the second quarter, following an interim deal between the two sides that reversed most of the sharp gains recorded when tensions were at their peak. However, the downside has been limited by tight physical market in Europe. Storage facilities are currently around 48% full, well below the 56% level at the same time last year and the five-year average of 61%. Adding to this, an intense heatwave across Europe is boosting demand from electricity providers to meet increased cooling needs.
2026-07-01
UK Gas Prices Rise Further
UK natural gas prices climbed to 104.6 pence a therm, the highest in over two weeks, as investors looked ahead to US–Iran talks in Qatar following weekend strikes from both sides that stoked supply fears. President Donald Trump said negotiations with Tehran are set to resume today after both sides agreed to halt a series of back-and-forth attacks over the Strait of Hormuz. Also supporting prices, hotter weather across Europe is ramping up gas-fired power generation to meet air conditioning demand, tightening supply conditions. The region continues to struggle to rebuild inventories to historical norms, with storage facilities currently around 48% full on average, raising concerns that the region could enter the winter season with the lowest gas reserves in 15 years. Despite the increase, UK gas prices are still set to end the month down by more than 5% and the second quarter with an 18% loss.
2026-06-30