UK Gas Prices Fall as Iran-US Talks Show Progress

UK natural gas prices have declined to around 143 pence per therm as hopes of progress in US-Iran negotiations have eased concerns over energy supplies.

Pakistan's Defense Minister Khawaja Asif reported that the two sides are 'close to some sort of arrangement.'

Meanwhile, talks between Iran and Oman regarding the reopening of the Strait of Hormuz were reportedly at an advanced stage, which could help restore LNG flows through the Persian Gulf and reduce pressure on European gas markets.

However, despite the optimism, Commerzbank raised its year-end European gas price forecast to €50/MWh from €45/MWh, while Uniper expects prices to remain around €50-€60/MWh as long as Hormuz remains closed.