UK Gas Prices Extend Gains

UK natural gas prices climbed past 130 pence per therm on Wednesday, the highest level in more than three months, as escalating tensions in the Middle East heightened concerns over LNG supplies. President Donald Trump warned that the US would target Iranian bridges and power infrastructure next week unless Tehran returns to negotiations. His warning came as US forces launched strikes on Iran for a fourth consecutive day and resumed a blockade of Iranian ports. Meanwhile, Trump backed away from an earlier threat to impose a 20% "security" fee on ships transiting the Strait of Hormuz, saying it would instead be replaced by Gulf state investments in the US. Concerns remain focused on Qatar, the region’s leading LNG exporter, as renewed disruptions to exports from the Ras Laffan complex could further tighten global LNG supply and complicate Europe's efforts to rebuild gas inventories ahead of winter.

UK natural gas prices rose to around 128 pence per therm on Tuesday, hitting their highest level in more than three months after President Donald Trump reimposed a US blockade on Iranian ports and announced a 20% security fee on all cargo shipped through the Strait of Hormuz. The blockade is scheduled to take effect at 4:00 p.m. EDT on Tuesday, dampening expectations for a near-term normalization of shipping activity through the vital waterway. LNG exports from the Middle East had only recently begun to recover, with Qatar ramping up production and shipments following the US-Iran interim agreement in June. However, the renewed hostilities have abruptly halted that recovery, raising concerns over fresh disruptions to LNG exports from the region. Such disruptions could tighten global gas supplies just as Europe is racing to refill storage facilities ahead of next winter.

UK natural gas prices rose more than 5% to above 124.1 pence per therm on Monday, recovering from the previous session’s losses as a new round of attacks between the US and Iran heightened concerns over LNG shipments through the Strait of Hormuz. The US Central Command said American forces launched another wave of strikes on dozens of targets across Iran, aimed at weakening Tehran’s ability to threaten maritime traffic through the strategic waterway. Iran retaliated by attacking countries in the region hosting US military forces, including Kuwait, Bahrain, and Jordan. Conflicting statements over the status of the strait added to uncertainty, with the US saying the waterway remains open, while Iran claimed it had closed the passage "until further notice." Market participants remain on high alert, as any prolonged conflict or direct damage to LNG export infrastructure in the Gulf could complicate Europe's efforts to replenish storage ahead of the heating season.