UK Gas Hits 4-week High

UK natural gas prices fell over 2% to around 118.5 pence per therm on Friday, easing from a four-week high after reports that US-Iran negotiations continued despite the recent escalation in hostilities. A US official reiterated that Washington remains committed to reaching a diplomatic solution with Tehran, helping to ease fears of a renewed full-scale conflict that could threaten energy supplies from the Persian Gulf. Earlier this week, prices had climbed about 15% after fresh US strikes on Iranian targets, launched in response to attacks on vessels transiting the Strait of Hormuz, triggered retaliatory Iranian strikes on American bases in the region. Markets remain closely focused on shipping through the Strait of Hormuz, which handles roughly one-fifth of global oil and LNG trade, as any renewed disruption could hinder Europe's efforts to replenish gas inventories ahead of winter.

UK Gas increased to 117.97 GBp/thm, the highest since June 2026. Over the past 4 weeks, Natural Gas UK lost 2.01%, and in the last 12 months, it increased 40.03%.

UK natural gas prices hovered around 116.5 pence a therm on Thursday, holding onto most of the recent gains, as the latest escalation in US-Iran tensions heightened concerns over fresh disruptions to LNG supplies from the Persian Gulf. US forces carried out additional strikes on Iran on Wednesday night, shortly after President Trump declared the end of the eight-week ceasefire. In response, Tehran launched a large-scale wave of missile and drone strikes against American bases in Kuwait, Qatar, and Bahrain. The flare-up in tensions followed Iranian attacks on vessels in the Strait of Hormuz, which prompted the US to reimpose sanctions on Iranian oil sales. Any renewed disruption to energy flows through the strait, a key transit route for roughly one-fifth of global oil and LNG trade, could make it more difficult for Europe to replenish gas storage facilities to adequate levels ahead of the heating season.