UK natural gas holds near two-week highs as Iran tensions persist

UK natural gas prices steadied at 148.4 pence a therm on Friday, hovering near a more than two-week high, amid persistent concerns over Europe’s gas supply security ahead of winter.

The US on Thursday threatened to maintain its naval blockade of Iran indefinitely, increasing pressure on Tehran as ceasefire talks have stalled.

The standoff has heightened uncertainty around the Strait of Hormuz, with both sides making competing claims of control over the strategic waterway.

The disruption has severely delayed LNG cargoes from Qatar, forcing European buyers to compete aggressively with Asian importers for limited supplies.

This is making it harder and more costly for Europe to rebuild gas inventories before winter, with storage facilities currently only 59% full, below historical averages.

Meanwhile, heatwaves across Southern and Central Europe have boosted gas-fired power generation to meet cooling demand, diverting supplies from storage.

UK gas prices have risen over 9% this week.