U.K natural gas futures jumped over 20% to above 170 pence per therm, hitting their highest level since January 2023, after Iran targeted major LNG facilities in the Middle East. Missile strikes ignited parts of Qatar’s Ras Laffan liquefied natural gas complex, one of the world’s largest LNG hubs. Production at the facility had already been halted following earlier attacks this month. The UAE also suspended operations at its Habshan gas facility and the Bab oil and gas field after Iranian missiles were intercepted over the sites. The situation is critical for Europe as it enters its stockpiling season, with storage levels about 15 percentage points below the five-year average following a cold winter. The UK is particularly vulnerable due to its limited storage capacity and heavy reliance on imported gas, making it highly sensitive to supply shocks.
