UK natural gas futures rose to 109.3 pence per therm, extending their rebound from a two-week low, amid concerns of prolonged supply disruption due to persistent tensions between the US and Iran.
The two sides failed to finalize a US-backed peace proposal, with President Donald Trump calling Iran’s response “totally unacceptable” and accusing Tehran of playing games.
This was after reports that Iran had offered to transfer part of its stockpile of highly enriched uranium to a third country while refusing to dismantle its nuclear facilities.
The Strait of Hormuz remained largely closed, with the route currently facing restrictions from both sides, choking off around one-fifth of global LNG supply.
Although most Persian Gulf gas exports are directed toward Asia, the disruption has tightened global supply and increased competition, fueling concerns in Europe as the region needs to replenish inventories before next winter.
Source: Trading Economics
