UK Gas Prices Plunge on Pause in US-Iran Strikes

UK natural gas prices plunged more than 7% to below 141 pence per therm on Monday, retreating from a four-month high as the pause in US-Iran attacks eased concerns over deeper supply disruptions. The US halted further attacks on Iran since Friday after 13 consecutive nights of strikes, prompting Tehran to suspend its retaliatory operations. The pause came as Iranian and Omani officials held talks on shipping through the Strait of Hormuz. However, concerns over Europe’s gas supply security ahead of winter remain, as the near-closure of the Strait curtailed LNG flows from the Persian Gulf, intensifying competition with Asian buyers. Hot weather across the region has also boosted electricity demand. European gas storage facilities were currently 54.2% full, well below the 65% level recorded a year earlier, and Equinor, the bloc’s largest gas supplier, warned last week that Europe is unlikely to reach its target of 80% storage capacity before the start of winter.

UK Gas increased to 154.73 GBp/thm, the highest since March 2026. Over the past 4 weeks, Natural Gas UK gained 60.1%, and in the last 12 months, it increased 89.13%.

UK natural gas prices climbed back above 150 pence per therm on Friday, hovering at a four-month high, amid concerns over Europe’s LNG supply security as US-Iran fighting intensifies. The US carried out its 13th consecutive night of strikes on Iran, with President Donald Trump warning Tehran and its Houthi allies in Yemen of “major military punishment” if the group launches further attacks on vessels in the Red Sea. UK gas prices have risen over 8% so far this week and surged about 44% so far in July, as curtailed LNG flows from the Persian Gulf intensified competition with Asian buyers, while hot weather across Europe boosted electricity demand for cooling. These factors are making it more challenging for Europe to replenish its gas storage facilities ahead of winter. Equinor, Europe’s largest gas supplier, said the bloc is unlikely to reach its 80% storage target before the heating season, leaving the market more vulnerable to sharp price swings when colder weather arrives.