UK natural gas futures eased to 114 pence per therm but retained most of their recent gains, as markets remained on edge over the duration of supply disruptions in the Middle East. President Donald Trump’s rejection of Iran’s response to a US-backed peace proposal has heightened fears that the 10-week conflict could drag on, further undermining shipping activity through the Strait of Hormuz. Hopes for a durable ceasefire have likewise faded.
The strait remains largely closed, with both sides imposing restrictions on transit, constraining roughly one-fifth of global LNG supply. Although the bulk of Persian Gulf gas exports are directed to Asia, the disruption has tightened overall supply and intensified global competition for cargoes, deepening concern in Europe as the region works to rebuild gas inventories ahead of next winter.
