Hormuz Tensions Send UK Gas Prices Soaring to 140 Pence
UK natural gas prices have rebounded to 140 pence per therm after falling earlier in the week, as renewed tensions in the Strait of Hormuz have created uncertainty over the resumption of LNG flows from the Persian Gulf.
The Strait of Hormuz has seen heightened activity with Iranian naval forces carrying out an operation against 'hostile targets' near the waterway. This has led to reports that Tehran is seeking to restrict US and Israeli vessels from transiting the area under a proposed agreement with Oman, while demanding compensation from countries it views as hostile before allowing passage.
The ongoing disruptions to LNG shipments have kept global supply conditions tight, leading to increased competition for available cargoes between Asian buyers and Europe's efforts to rebuild gas inventories ahead of winter. This has contributed to the rise in UK natural gas prices, which had previously fallen due to a surge in imports from other regions.