UK Natgas Prices Soar Amid Persian Gulf Supply Disruptions

UK natural gas prices have surged to their highest level in over three and a half years, reaching nearly 183 pence per therm on Tuesday. This increase is largely attributed to concerns about LNG supply from the Persian Gulf, which has been severely disrupted due to heightened US-Iran tensions.

The escalating conflict between the two nations has put energy infrastructure across the region at risk of further attacks, with Iran warning that US oil and gas facilities could be vulnerable. As a result, Qatar has suspended its LNG shipments and extended force majeure on cargoes bound for European and Asian markets through the autumn.

This reduced inflow has slowed the pace of gas storage injections in Europe, leaving the market increasingly vulnerable as the heating season approaches. EU storage facilities are currently around 66% full, below the seasonal average.