UK natural gas futures fell more than 3% on Tuesday, slipping back below 100 pence per therm and erasing Monday’s gains, as markets reacted to the prospect of continued peace talks between the US and Iran. Media reports indicate that Iran is preparing to join a second round of negotiations with the US in Islamabad, after initially signaling reluctance to participate.
Nonetheless, uncertainty persists. President Trump has suggested he is unlikely to extend the current two-week ceasefire, which is due to expire on Wednesday, and has reiterated that the Strait of Hormuz will remain closed until an agreement is reached. The conflict has already disrupted roughly one-fifth of global LNG flows, though weaker demand from Asia has eased competition for available cargoes.
In addition, National Gas has recently indicated that UK storage levels should be sufficient to meet summer demand and may even support limited exports to continental Europe.
