UK natural gas futures climbed back above 114 pence per therm, rebounding from a more than two-week low, as mixed signals from the United States and Iran clouded prospects for a potential agreement. Iranian media reported progress on a draft accord intended to end the conflict, but the White House later dismissed the reports as “a complete fabrication.” Fresh US strikes on a military facility and other targets near the Strait of Hormuz underscored the persistent risks to negotiations.
Traffic through the Strait has been nearly paralyzed, disrupting roughly one-fifth of global LNG shipments and complicating Europe’s efforts to rebuild comparatively low gas inventories ahead of the winter heating season. At the same time, record-breaking heat across the UK has introduced additional short-term uncertainty on the demand side.
