UK Gas Prices Slide Amid Iran-US Diplomacy

UK natural gas prices have extended their decline, dropping below 136 pence per therm on Tuesday after a more than 8% drop in the previous session.

The downward trend is attributed to diplomatic efforts between the US and Iran, with President Donald Trump expressing optimism about reaching a deal. Trump said on Monday that 'we're having good talks' and there's a chance of reaching an agreement, but warned that US strikes would resume if negotiations failed.

Despite this development, concerns over Europe's gas supply persist, as the bloc's storage levels are at risk of falling short of its winter refill targets. The renewed escalation of the conflict in early July disrupted the recovery of LNG exports from Qatar, and with the Strait of Hormuz still largely closed, it remains uncertain when additional supplies from the region could reach global markets.