UK natural gas slips below 148 pence/therm amid Hormuz uncertainty

UK natural gas prices fell below 148 pence a therm on Thursday but remained more than 8% higher so far this week, as supply concerns persisted amid uncertainty over efforts to resolve the Middle East conflict and reopen the Strait of Hormuz.

Talks between the US and Iran appear to have hit an impasse, with both sides taking a firmer stance and President Trump insisting that Washington has full control of the key waterway and intends to keep it that way.

Shipping disruptions have sharply curtailed LNG flows from the Gulf, significantly delaying cargoes from major exporter Qatar and making it difficult for Europe to rebuild gas inventories ahead of winter.

Analysts anticipate European gas prices will maintain a firm floor until storage levels show clearer signs of building before the heating season begins.

At the same time, intense summer heatwaves across Southern and Central Europe have ramped up gas-fired power generation to meet cooling needs, diverting supplies from storage.