UK Gas Prices Plummet on Pause in US-Iran Tensions
UK natural gas prices plummeted by over 7% on Monday to below 141 pence per therm, retreating from a four-month high as concerns over supply disruptions eased.
The US halted further attacks on Iran after 13 consecutive nights of strikes, prompting Tehran to suspend its retaliatory operations.
Iranian and Omani officials held talks on shipping through the Strait of Hormuz, which has been at near-closure due to the tensions. This has curtailed LNG flows from the Persian Gulf, intensifying competition with Asian buyers.
Despite the pause in US-Iran strikes, concerns over Europe's gas supply security remain ahead of winter, as European gas storage facilities were only 54.2% full, well below last year's level of 65%. Equinor, the bloc's largest gas supplier, warned that Europe is unlikely to reach its target of 80% storage capacity before the start of winter.