UK natural gas prices climbed above 154 pence per therm on Monday, marking a new three-week high, as disruptions to LNG shipments from the Gulf persisted amid stalled US-Iran talks. The outlook for a near-term deal to fully reopen the Strait of Hormuz has darkened further following renewed Israeli strikes on Tehran-backed Hezbollah in Lebanon and fresh US threats of additional sanctions on Iran. Shipping traffic through the key waterway has dropped sharply after recent attacks on vessels, underscoring ongoing security risks.
In Europe, anxiety over gas inventories is mounting. Storage levels remain below historical norms and are trailing the pace required to comfortably hit pre-winter filling targets. Efforts to replenish reserves are being further constrained by heatwaves across Southern and Central Europe, which are driving up demand for gas-fired power generation and diverting volumes away from storage.
