UK Gas Prices Plummet on Iran Strait Reopening Hopes
UK natural gas prices have fallen to their lowest level in two weeks, dipping below 178 pence per therm. This comes after reports that Iran could reopen the Strait of Hormuz if the US lifts its blockade of Iranian ports.
Japan's Kyodo News reported that Tehran had proposed reopening the waterway within seven days, potentially providing a basis for diplomatic discussions at the UN General Assembly.
President Donald Trump is due to address the assembly and may meet Iranian President Masoud Pezeshkian. The easing of supply concerns has also contributed to the price drop, with reports suggesting that LNG tankers and crude carriers are finding alternative routes out of the Gulf.
However, despite these developments, supply risks remain elevated. Europe's gas storage levels are still below their seasonal average, and Norwegian gas exports remain constrained due to maintenance.