FX.co ★ UK Gas Prices Jump as Middle East War Escalates

UK natural gas prices rose 4% to above 144 pence per therm on Monday, building on last week’s strong rally to reach a four-month high. The move reflects growing concerns over deeper supply disruptions as hostilities between the US and Iran intensified over the weekend. The US Central Command reported on Sunday that it had carried out a new round of strikes on Iran for the ninth consecutive night, while Kuwait and Bahrain also reported being targeted by Iranian attacks. The conflict has expanded beyond military sites to include bridges, utility infrastructure, and port facilities, heightening the risk of a return to full-scale war. Shipping through the Strait of Hormuz has largely stalled, with the US enforcing a naval blockade on Iranian ports and Tehran targeting vessels it claims are violating its regulations. These mounting supply risks, combined with stronger demand for gas-fired power generation, are making it increasingly difficult for Europe to replenish its large storage facilities ahead of the winter season.