Hormuz Disruption Sends UK Gas Prices Soaring

UK natural gas prices have skyrocketed to 187 pence per therm, more than 150% higher than at the start of the year. The surge is largely due to supply concerns surrounding the Strait of Hormuz.

The UK's limited gas storage capacity and reliance on seaborne LNG imports when demand rises or renewable generation weakens have left it particularly exposed to these risks.

Europe, while having greater storage capacity, is also facing unusually low inventories, with facilities around 71% full versus a five-year seasonal average of 87%.

The prolonged disruption through the Strait of Hormuz has increased competition between European and Asian buyers for LNG, which accounts for about a fifth of the global trade that transits this waterway.