FX.co ★ UK Natural Gas Prices Advance

UK natural gas futures climbed above 116 pence per therm, rebounding from a three-week low amid persistent uncertainty over a possible US–Iran agreement. Both countries have exchanged messages proposing changes to a draft deal intended to extend the ceasefire and reopen the Strait of Hormuz, but it remains unclear whether the talks are making substantive progress. Regional tensions have escalated further, with Israel and Iran-backed Hezbollah in Lebanon engaged in heavy cross-border fire, and an Iranian ballistic missile striking a Kuwaiti air base. Shipping through the Strait has slowed to a near standstill, disrupting around one-fifth of global LNG flows and complicating Europe’s efforts to rebuild its relatively low gas storage ahead of winter. Record-breaking heat across the UK has added to concerns over gas demand.