UK Natgas Prices Under Pressure from Middle East Tensions
UK natural gas prices have been hovering near multi-year highs due to concerns over the region's gas supply outlook. Prices dropped below 196 pence per therm on Thursday but remained close to their highest level in more than three years.
The main issue is the disruption of LNG shipments through the Strait of Hormuz, a critical route that handles roughly 20% of global gas flows, mainly from Qatar. Iran has said it attacked 10 ships near the strait and warned it would step up strikes if Washington continued attacks on its territory.
Additionally, maintenance in Norway and lower Algerian flows to Italy are limiting pipeline supplies to Europe. These supply risks come as Europe nears the end of its summer storage injection season, threatening to further intensify competition for global gas supplies during the winter.