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.





