27.07.202606:29:31UTC+00UK Gas Prices Plunge on Pause in US-Iran Strikes

UK natural gas prices fell more than 7% on Monday to below 141 pence per therm, pulling back from a four-month high as a pause in US–Iran hostilities eased fears of severe supply disruptions. The United States has halted further strikes on Iran since Friday, ending a run of 13 consecutive nights of attacks and prompting Tehran to suspend its retaliatory actions. The pause coincides with talks between Iranian and Omani officials on securing shipping through the Strait of Hormuz.

Despite this easing of tensions, concerns over Europe’s gas security heading into winter persist. The near-shutdown of the Strait recently constrained LNG exports from the Persian Gulf, intensifying competition with Asian buyers. At the same time, unusually hot weather across Europe has driven up electricity demand. Storage levels in European gas facilities currently stand at 54.2% of capacity, well below the 65% recorded at this time last year. Equinor, the bloc’s largest gas supplier, warned last week that Europe is unlikely to achieve its 80% storage target before winter begins.