UK natural gas rises toward 183p/therm on supply disruption worries

UK natural gas prices rose toward 183 pence per therm on Tuesday and were hovering at their highest level in more than three and a half years, as LNG supply from the Persian Gulf remained severely disrupted amid heightened US-Iran tensions. The escalation in fighting between the two countries highlighted the difficulty of reaching a resolution that could reopen the Strait of Hormuz, after Iran warned on Monday that energy infrastructure across the region, including US oil and gas facilities, could face further attacks.

Qatar has largely suspended LNG shipments and extended force majeure on cargoes bound for European and Asian markets through the autumn, with shipping disruptions continuing through the critical waterway. The reduced inflow has slowed gas storage injections in Europe, with EU storage facilities around 66% full, below the seasonal average, leaving the gas market more exposed as the heating season approaches.