UK natural gas prices climbed back to above 150 pence per therm on Friday, hovering at a four-month high, amid concerns over Europe’s LNG supply security as US-Iran fighting intensifies.
The US carried out its 13th consecutive night of strikes on Iran, with President Donald Trump warning Tehran and its Houthi allies in Yemen of “major military punishment” if the group launches further attacks on vessels in the Red Sea.
UK gas prices have risen over 9% so far this week and surged more than 44% so far in July, as curtailed LNG flows from the Persian Gulf intensified competition with Asian buyers, while hot weather across Europe boosted electricity demand for cooling.
These factors are making it more challenging for Europe to replenish its gas storage facilities ahead of winter.
Equinor, Europe’s largest gas supplier, said the bloc is unlikely to reach its 80% storage target before the heating season, leaving the market more vulnerable to sharp price swings when colder weather arrives.