UK natural gas prices rose toward 134 pence a therm on Friday, bringing weekly gains to more than 14%, amid growing threats to Persian Gulf supplies as US-Iran attacks intensified.
The US launched fresh strikes on Iran on Thursday, following previous attacks that struck an unladen oil tanker bound for Iran ports after the reimposition of a blockade.
Tehran has countered with attacks targeting US military bases in neighboring countries and has reportedly called Yemen’s Houthi rebel group to shut the Red Sea export route if Washington targets Iranian power infrastructure.
UK gas prices climbed to their highest in over three months and have surged over 28% in July so far, erasing an over 18% decline in Q2, as supply disruptions and strong power generation demand constrain Europe’s ability to rebuild inventories before winter.
Supply concerns were exacerbated after Qatar, the Middle East's largest LNG exporter, halted plans to boost output after one of its tankers was attacked near Hormuz.