UK natural gas prices climbed to about 102 pence per therm, extending the previous session’s gains despite signs of diplomatic progress between the United States and Iran. On Monday, the two countries agreed to establish communication channels aimed at keeping the Strait of Hormuz open and ending hostilities in Lebanon. This followed a tense opening to the talks on Sunday, after Iranian media reported that Tehran had suspended negotiations in response to President Donald Trump’s renewed threats to strike Iran over its backing of Hezbollah.
Even with this diplomatic thaw, market participants remained uneasy about Europe’s capacity to rebuild its relatively low gas inventories ahead of the winter season. Additional support for prices came from forecasts of elevated temperatures across Europe, which are expected to bolster gas demand from power generators.
