UK Natgas Prices Jump 6%

UK natural gas futures jumped 6% to 124 pence per therm, the highest in nearly three weeks, as Iran and Israel traded missile strikes for the first time since a ceasefire was agreed in April, threatening ongoing diplomatic efforts to end the war. Israel said on Monday it struck military targets in Iran in response to missile attacks launched by Tehran, which Iran described as retaliation for earlier Israeli strikes in Lebanon. The latest strikes came despite President Donald Trump’s call for Israel to refrain from retaliatory action. The escalating hostilities have heightened fears of a more prolonged disruption to energy shipments from the Persian Gulf. The sustained disruption could intensify competition for LNG cargoes, fueling concerns in Europe as the region races to secure fuel this summer to refill its tanks before next winter.

UK natural gas futures rose more than 3% toward 119 pence per therm, as fighting in the Middle East flared up and diplomatic talks remained at an impasse. The US military said that Iran fired several ballistic missiles toward regional neighbors but failed to hit their targets, as American and allied forces intercepted missiles aimed at Kuwait and Bahrain, while the US also struck an Iranian military ground control station on Qeshm Island in response. This comes as Israel continued its attacks in Lebanon. Despite the escalation in hostilities and Iran's claims that negotiations have stalled, President Donald Trump insists that talks are ongoing. The lack of meaningful progress toward a resolution has heightened fears that disruptions to energy flows from the Persian Gulf could persist. With storage facilities currently only 38% full, the prolonged disruption complicates Europe’s efforts to refill inventories before next winter.

UK natural gas futures fell below 117 pence per therm, following the prior session's sharp gains amid a lack of clear progress in the US-Iran peace talks. Prices surged 7.5% on Monday, fueled by escalating geopolitical tensions after Iran halted indirect negotiations amid Israel’s intensified attacks in Lebanon and warned it could expand its blockade from the Strait of Hormuz to the Bab el-Mandeb Strait, a key maritime passage at the southern gateway to the Red Sea. Meanwhile, President Donald Trump stated that discussions were continuing and that he anticipates a deal over the next week, easing some market concerns. The ongoing closure of the Strait of Hormuz has disrupted roughly 20% of global LNG shipments, tightening supply and intensifying competition for cargoes among importing nations. With storage facilities currently only 38% full, the prolonged disruption complicates Europe’s efforts to refill inventories before next winter.