UK natural gas prices climbed toward 128 pence per therm on Tuesday, reaching their highest level in more than three months after President Donald Trump reimposed a US blockade on Iranian ports and announced a 20% security fee on all cargo transiting the Strait of Hormuz. The blockade, set to take effect at 4:00 p.m. EDT on Tuesday, has dampened expectations of any near-term normalization in shipping activity through this critical chokepoint.
LNG exports from the Middle East had only recently begun to recover, with Qatar increasing production and shipments following the US–Iran interim agreement in June. The renewed hostilities have abruptly reversed that improvement, heightening concerns over fresh disruptions to LNG exports from the region. Any such disruptions could tighten global gas supplies just as Europe is racing to refill storage facilities ahead of next winter.
