UK natural gas tops 183 pence/therm as US-Iran tensions escalate
UK natural gas climbed above 183 pence a therm on Monday, its highest level in more than three and a half years. Escalating US-Iran tensions raised concern for Persian Gulf supply disruption.
UK natural gas prices rose above 183 pence a therm on Monday, the highest level in more than three and a half years, as US-Iran tensions escalated and raised the risk of energy-supply disruption from the Persian Gulf. Iran said it had targeted oil tankers and several US-linked vessels and plans to establish a restricted maritime zone beyond the Strait of Hormuz in the coming days. The move followed US strikes on Iranian oil tankers, which Washington said were in retaliation for Tehran’s missile attacks on US Navy warships. The continuing escalation is adding to concerns that Qatari LNG shipments to Europe could face further delays.
Europe is nearing the end of its summer storage injection period, with gas storage facilities about 62% full, below the five-year seasonal average, increasing the risk of tighter competition for supply and leaving the region more exposed to price spikes in the colder months.