UK natural gas prices climbed back above 140 pence per therm on Monday, recouping part of last week’s losses amid ongoing uncertainty over when shipping through the Strait of Hormuz will return to normal. Iran and Oman failed to reach a final agreement over the weekend after Tehran presented Washington with an extensive set of new conditions for fully reopening the strategic waterway, suggesting that any near-term easing of supply constraints is likely to be limited.
Iran signaled that a deal was within reach but stressed this did not imply an imminent reopening of the strait, and again rejected any prospect of direct talks with the United States. With an agreement still out of reach, disruptions to LNG flows through this critical chokepoint are set to continue, holding up cargoes from major exporters such as Qatar.
The resulting delays are keeping the global gas market tight, intensifying competition with Asian buyers for available LNG cargoes and complicating Europe’s efforts to build sufficient inventories ahead of the winter heating season.
