UK natural gas prices climbed above 154 pence per therm on Thursday, as escalating conflict in the Middle East intensified concerns over Europe’s LNG supply security ahead of the winter heating season. Ongoing exchanges of strikes between the US and Iran, alongside both sides downplaying the likelihood of peace talks, have heightened the risk of prolonged disruptions to regional energy exports.
The conflict has further widened with Iran-backed Houthi militants claiming to have targeted two Saudi Arabian tankers in the Red Sea. UK gas prices have now returned to levels last seen at the height of the recent flare‑up, as reduced LNG flows from the Persian Gulf tighten supply and increase competition with Asian buyers. At the same time, unseasonably high temperatures across Europe are driving up electricity demand and supporting gas consumption for power generation.
Equinor, Europe’s largest gas supplier, has warned that the bloc is unlikely to reach its 80% gas storage target before the core heating period. That shortfall would leave the market more exposed to abrupt price swings once colder weather sets in.
