UK natural gas prices climbed above 132 pence per therm on Thursday, marking a fourth consecutive daily increase and reaching their highest level in more than three months. The rally was driven by mounting concerns over LNG supply from the Middle East following continued US military action against Iran.
After reimposing a naval blockade, the US launched another series of strikes on Iran’s coastal defenses and missile sites, and reported firing on an empty oil tanker headed to an Iranian port. In response, Tehran warned it could disrupt additional regional energy exports, characterizing the confrontation as an “existential war” with the United States.
The latest escalation comes at a particularly sensitive moment for Europe, which is currently rebuilding gas inventories ahead of the winter heating season. Any sustained disruption to LNG exports from the region could tighten global supply, potentially forcing European buyers into fiercer and more expensive competition with Asian importers for spot cargoes.
