UK natural gas prices drop further, down 4%

UK natural gas prices fell 4% to around 157.5 pence per therm on Wednesday, extending losses from the previous session as signs of progress in the Middle East talks eased fears of 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.