UK Natural Gas Holds Advance

UK natural gas futures dropped to 114 pence per therm but still held most of its gains from the previous sessions, amid persistent uncertainty over how long supply disruptions in the Middle East would last. President Donald Trump’s dismissal of Iran’s response to a US-backed peace proposal has intensified concerns that the 10-week war could continue, further disrupting shipping through the Strait of Hormuz. Optimism for a lasting ceasefire have also diminished. The strait remained largely closed, with the route currently facing restrictions from both sides, choking off around one-fifth of global LNG supply. While most gas from the Persian Gulf goes to Asia, the disruption has tightened global supply and increased competition, fueling concerns in Europe as the region needs to replenish inventories before next winter.

UK natural gas futures rose toward 116 pence per therm, extending their rebound from a two-week low, amid concerns of prolonged supply disruption due to persistent tensions between the US and Iran. The two sides failed to finalize a US-backed peace proposal, with President Donald Trump calling Iran’s response “totally unacceptable” and accusing Tehran of playing games. This was after reports that Iran had offered to transfer part of its stockpile of highly enriched uranium to a third country while refusing to dismantle its nuclear facilities. Trump also cast doubt on the survival of their ceasefire. The Strait of Hormuz remained largely closed, with the route currently facing restrictions from both sides, choking off around one-fifth of global LNG supply. Although most Persian Gulf gas exports are directed toward Asia, the disruption has tightened global supply and increased competition, fueling concerns in Europe as the region needs to replenish inventories before next winter.

UK natural gas futures rose to 109 pence per therm, recovering from a two-week low as prospects for peace in the Middle East remained uncertain amid renewed tensions. The US military launched strikes on Iranian military targets on Thursday in response to attacks on its three destroyers in the Strait of Hormuz. Meanwhile, President Trump said the ceasefire remains in place despite the strikes, while Iranian TV reported that the situation is “back to normal,” providing some relief. These developments come as the US seeks to de-escalate tensions, while also awaiting Iran’s response to a proposal to reopen the strategic waterway. The near-closure of the strait has disrupted around one-fifth of global LNG supply, with the route facing restrictions from both sides. Although most gas from the Persian Gulf goes to Asia, the disruption has tightened global supply and intensified competition, fueling concerns in Europe as the region needs to replenish inventories before next winter.