UK gas prices jump to 2023 high on Hormuz supply fears

UK natural gas prices climbed as high as 184 pence per therm on Wednesday, their highest level since January 2023, as traders assessed the latest US-Iran attacks, with growing uncertainty over traffic through the Strait of Hormuz heightening supply concerns and weighing on sentiment.

The US said it had launched overnight airstrikes on targets in Iran, prompting retaliation from Tehran in the most serious escalation between the two countries in weeks.

Iran’s Islamic Revolutionary Guard Corps warned that the strikes would further restrict traffic through the Strait of Hormuz, a key energy route carrying roughly a fifth of global LNG.

Gas prices rose despite expectations of weaker demand, as strong wind power generation reduces the need for gas-fired electricity.