UK natural gas futures climbed to about 111.6 pence per therm, the highest level in two weeks, as tensions in the Strait of Hormuz persisted following the breakdown of US–Iran peace talks. President Donald Trump canceled a planned visit by a US delegation to Pakistan over the weekend, while Iran reiterated it would not enter negotiations under threat. With both sides sustaining a de facto blockade, the crucial shipping lane has become nearly impassable.
The disruption has affected roughly one-fifth of global LNG supply. However, softer demand from Asia has helped relieve some pressure on European buyers by reducing competition for available cargoes. National Gas also indicated that domestic gas inventories are likely to be sufficient to cover summer demand and could even support some exports to continental Europe.
