UK natural gas prices fell below 178 pence per therm, the lowest level in three weeks, following reports that Iran may reopen the Strait of Hormuz if the United States lifts its blockade of Iranian ports. Japan’s Kyodo News reported that Tehran had proposed reopening the waterway within seven days, a move that could form the basis for diplomatic talks at the UN General Assembly. President Donald Trump is scheduled to address the assembly and may meet with Iranian President Masoud Pezeshkian.
At the same time, reports that a growing number of LNG tankers and crude oil carriers are successfully using alternative routes out of the Gulf have further eased immediate supply concerns. Nonetheless, risks to supply remain elevated. European gas storage levels are still below the seasonal average at a point in the year when they would normally be near full capacity, and Norwegian gas exports continue to be constrained by ongoing maintenance.
