UK natural gas prices rose above 198 pence per therm, their highest level in more than three weeks, as ongoing tanker attacks in the Strait of Hormuz intensified supply concerns. Iran has sharply escalated assaults on commercial and energy vessels passing through the key chokepoint, reinforcing persistent shipping risks and threatening to undermine the broader recovery in fuel deliveries.
Further upward pressure on prices is coming from forecasts for cooler weather across Northwestern Europe, which is likely to lift heating demand and increase gas consumption. This weather-driven support is emerging even as European gas storage levels continue to build, with facilities now around 73% full. However, inventories still lag behind where they stood at the same time last year.
In the UK, a strong increase in wind power generation in September has reduced dependence on gas-fired power plants. Nonetheless, this shift has not been sufficient to shield the market from wider price pressures linked to ongoing supply disruptions in the Gulf region.
