UK Gas Prices Soar Amid US-Iran Tensions and European Supply Worries

UK natural gas prices have surged to their highest level since January 2023, reaching above 172 pence per therm on Tuesday.

The jump of over 4% in prices is attributed to increased concerns over Europe's gas supply security due to the flare-up in US-Iran tensions.

The Strait of Hormuz, through which one-fifth of global LNG trade passes, has been threatened by sustained disruption, intensifying competition with Asian buyers and tightening supplies for Europe.

EU gas storage facilities were around 64% full at this time of year, below historical levels, adding to the upward pressure on prices.