FX.co ★ UK Natural Gas Prices Decline

UK natural gas futures declined to 114.7 pence per therm on Tuesday, retracing part of the previous session’s gains amid signs of ongoing dialogue between the United States and Iran. President Donald Trump said that Iran had made contact and expressed a willingness to reach a deal, while the Iranian president indicated that Tehran is prepared to continue talks within the framework of international law. These developments eased fears over potential supply disruptions linked to a possible US blockade of Iranian ports in the Strait of Hormuz. At the same time, National Gas, the UK gas system operator, stated that domestic gas inventories should be sufficient to cover demand over the summer, despite tensions in Hormuz, and may even permit some British gas to be exported to continental Europe.