UK Gas Prices Soar Amid Disrupted LNG Supplies and Strait of Hormuz Risks
UK natural gas prices have hit a fresh three-week high, reaching 154 pence per therm on Monday. The surge comes amid continued disruption to liquefied natural gas (LNG) supplies from the Gulf region due to stalled US-Iran negotiations and ongoing security risks in the area.
The Strait of Hormuz has seen significant traffic reductions following recent attacks on vessels, making an imminent agreement to reopen the waterway increasingly uncertain. Renewed Israeli strikes against Hezbollah in Lebanon have further exacerbated tensions, with the US threatening additional sanctions on Iran.
Europe's concerns over gas inventories are growing as storage levels remain below historical averages and lag behind pre-winter targets. Heatwaves across Southern and Central Europe have boosted demand for gas-fired power generation, diverting supplies from storage and hampering efforts to rebuild inventories.