03.08.202606:29:54UTC+00UK Natural Gas Slides After Trump Halts Iran Strikes

UK natural gas prices fell more than 4% to around 138 pence per therm on the first trading day of August, the lowest level in over two weeks. The decline followed President Donald Trump’s decision to call off a planned weekend strike on Iran, after stating that Tehran and other Middle Eastern countries had assured him they were working toward a negotiated agreement. Trump indicated that talks between the parties are scheduled to begin on Monday.

The announcement eased markets after several days of heightened tensions that had driven energy prices sharply higher. UK natural gas prices had surged more than 38% in July, as renewed hostilities fueled concerns about LNG supplies from the Persian Gulf and Europe’s ability to rebuild gas stocks ahead of winter.

By the end of last month, European gas storage sites were roughly 55% full, well below both the five-year average and the level seen at the same time a year earlier. This left inventories trailing the pace required to meet pre-winter targets before the heating season begins in November.