UK Natgas Prices Advance on Middle East Uncertainty

UK natural gas prices rose to 186 pence per therm Thursday, recovering from a three-week low amid uncertainty over a diplomatic resolution to the Middle East conflict that could reopen the Strait of Hormuz. Iranian President Masoud Pezeshkian said that Tehran would never surrender to the US but remained open to dialogue and diplomacy, while setting conditions for a return to negotiations. The key waterway remains largely closed, impeding LNG flows from the Persian Gulf. Europe’s gas storage position remains a key concern as the winter heating season approaches. Storage facilities are around 70% full, still below the five-year seasonal average and the region’s 80% target. Goldman Sachs expects European and Asian gas prices to rise sharply if Gulf LNG exports remain constrained.