UK natural gas prices extended their sharp gains on Tuesday, climbing to 151 pence per therm, as hopes for a deal to reopen the Strait of Hormuz faded amid competing demands from the US and Iran. On Monday, President Trump called on Iran to compensate for people killed in past conflicts, following Tehran’s own demand for compensation over damage it says was caused by US and Israeli attacks. These hardened positions have dampened expectations of a swift agreement that would restore LNG shipments through the Persian Gulf.
The continued disruption has tightened global LNG supplies, intensifying competition with Asian buyers and complicating Europe’s efforts to rebuild gas inventories ahead of winter. European gas storage levels have recently dropped to their lowest for this time of year in records dating back to 2009, deepening concerns about winter supply security. Traders are also closely watching prolonged output cuts at Norway’s Ormen Lange gas field, the largest pipeline supplier to Europe, as any further reduction could exacerbate the region’s already strained gas market and heighten price volatility.
