UK Natural Gas Rises on Middle East Uncertainty

2026-08-28 06:43 By Judith Sib-at 1 min. read

UK natural gas prices rose to 170 pence per therm on Friday, extending gains from the previous session and moving back toward their highest level since January 2023, as supply risks remain amid uncertainty over a Middle East peace deal.

Prices jumped on Thursday after reports that President Trump was not interested in returning to the terms of a June deal with Iran.

This reversed losses from earlier this week, which were driven by progress in talks between Pakistan and Iran to end the conflict and an agreement between Tehran and Oman on control and revenues tied to the Strait of Hormuz.

The near-closure of the Strait has continued to disrupt LNG supplies from Qatar, while extreme summer heat-driven cooling demand diverted supplies from storage.

These factors have left Europe scrambling to secure supplies, heightening fears that the region could enter the winter heating season with insufficient reserves.

For the week, UK gas prices rose around 4%, their third consecutive weekly gain.



News Stream
UK Natural Gas Rises on Middle East Uncertainty
UK natural gas prices rose to 170 pence per therm on Friday, extending gains from the previous session and moving back toward their highest level since January 2023, as supply risks remain amid uncertainty over a Middle East peace deal. Prices jumped on Thursday after reports that President Trump was not interested in returning to the terms of a June deal with Iran. This reversed losses from earlier this week, which were driven by progress in talks between Pakistan and Iran to end the conflict and an agreement between Tehran and Oman on control and revenues tied to the Strait of Hormuz. The near-closure of the Strait has continued to disrupt LNG supplies from Qatar, while extreme summer heat-driven cooling demand diverted supplies from storage. These factors have left Europe scrambling to secure supplies, heightening fears that the region could enter the winter heating season with insufficient reserves. For the week, UK gas prices rose around 4%, their third consecutive weekly gain.
2026-08-28
UK Natural Gas Prices Hold Losses
UK natural gas prices hovered around 165 pence per therm on Thursday after falling for the previous two sessions, as investors assessed diplomatic progress in the Middle East. Iran’s military said Tehran and Oman had reached agreements on the sharing of control and revenues from the Strait of Hormuz. However, Tehran stressed that the deal does not imply an immediate reopening of the waterway and warned that the strait will remain closed unless the US ends the war, raising uncertainty over when supply conditions will improve. Continued restrictions in the strait have disrupted LNG flows from the Persian Gulf, causing severe delays to shipments from major exporter Qatar. At the same time, extreme summer heat has boosted demand for gas-fired power generation, leaving European gas storage just 63% full, the lowest level for this time of year since 2009. As a result, prices are likely to remain volatile, particularly if supply disruptions persist into the heating season.
2026-08-27
UK Natural Gas Prices Drop Further
UK natural gas prices fell below 160 pence per therm on Wednesday, extending losses from the previous session as signs of progress in Middle East negotiations eased concerns over further supply disruptions. Iran’s and Oman’s foreign ministers said that they discussed plans for a temporary transit corridor through the Strait of Hormuz, along with a project to clear mines from the waterway. Pakistan also reported significant progress in talks with Tehran aimed at ending the war. The US decision to return diplomats to the Middle East also allayed fears of a further escalation in the conflict. However, supply risks remain as the ongoing maritime blockade continues to disrupt physical LNG flows from the Persian Gulf, with shipments from major exporter Qatar facing severe delays. Persistent hot weather across Europe is also driving higher electricity demand for cooling, slowing the pace of seasonal gas storage injections.
2026-08-26