UK natural gas futures rose to 108.5 pence per therm, recovering from a two-week low as prospects for peace in the Middle East remained uncertain amid renewed tensions.
The US military launched strikes on Iranian military targets on Thursday in response to attacks on its three destroyers in the Strait of Hormuz.
Meanwhile, President Trump said the ceasefire remains in place despite the strikes, while Iranian state TV reported that the situation is “back to normal,” providing some relief.
These developments come as the US seeks to de-escalate tensions, while also awaiting Iran’s response to a proposal to reopen the strait.
The near-closure of the strait has disrupted around one-fifth of global LNG supply, with the route facing restrictions from both sides.
Although most gas from the Persian Gulf are directed toward Asia, the disruption has tightened global supply, fueling concerns in Europe as the region needs to replenish inventories before next winter.
Source: Trading Economics
