UK Natural Gas Prices Soar Amid Strait of Hormuz Tensions

The UK natural gas market is experiencing a surge in prices due to ongoing tensions in the Strait of Hormuz, which has led to supply shortages and increased competition for liquefied natural gas (LNG) shipments. The price of EEX THE EGSI Natural Gas Day Futures (Sep 2026 D05) has risen by 75.67% on an annual basis, with a current market value of 149.72 pence.

The diplomatic deadlock between Tehran and Washington has resulted in delayed LNG shipments from Qatar, leading to a scramble for cargo among European and Asian buyers. The Bank of England has warned that the UK economy will face a 'substantial shock' due to the Middle East conflict, while the IMF has lowered its growth forecast for the country due to Iran war inflation.

Technical analysis suggests that the market is forming a W pattern on the daily chart, with a neckline at 155 pence marking key resistance and a measured move trigger. A close above this level would signal the completion of the W pattern and project a price objective of 180-185 pence.