UK natural gas prices climbed toward 134 pence per therm on Friday, bringing weekly gains to more than 14%, as escalating US–Iran hostilities heightened risks to Persian Gulf supply routes. The US launched additional strikes on Iran on Thursday, following earlier attacks that hit an unladen oil tanker en route to Iranian ports after the reimposition of a blockade. In response, Tehran has targeted US military bases in neighboring countries and has reportedly urged Yemen’s Houthi movement to close the Red Sea export corridor if Washington attacks Iranian power infrastructure.
UK gas prices have now reached their highest level in more than three months and are up over 28% so far in July, wiping out an over 18% decline recorded in the second quarter. Supply disruptions and stronger power-generation demand are limiting Europe’s capacity to rebuild gas inventories ahead of the winter season. Further tightening the outlook, Qatar — the Middle East’s largest LNG exporter — has suspended plans to increase output after one of its tankers was attacked near the Strait of Hormuz.
