UK natural gas prices continued their downward trend on Thursday, reaching 211 pence per therm. This marks an 18% drop over the past week, the lowest level in over two weeks.
The decline is driven by growing confidence in diplomatic efforts to end the US-Iran war, with Qatar playing a key role in mediation. The recent Democratic victory in the US midterm elections has also reduced fears of further military escalation, as it may limit President Trump's ability to sustain operations against Iran.
The UK gas market remains exposed to price volatility from the war, compounded by falling domestic production. This increases reliance on Norwegian pipeline supplies and global LNG imports. The country's limited storage capacity leaves it more vulnerable to winter supply shortages compared to its European neighbors.