FX.co ★ UK Natural Gas Futures Edge Up

UK natural gas futures inched up to around 138 pence per therm as supply risks outweighed softer demand. The move followed the first attacks on Israel by Yemen’s Houthi movement over the weekend, broadening the US–Israel confrontation with Iran and heightening fears of potential disruptions to energy flows.

Roughly one‑fifth of global LNG typically transits the Strait of Hormuz, but shipments have almost come to a standstill since strikes on Iran began on February 28. With little sign of de‑escalation, persistent geopolitical tension continues to underpin prices, even as near‑term market fundamentals soften.

Upside remains capped, however, as Europe benefits from stronger wind generation and milder weather, conditions that are expected to curb power‑sector gas demand in early April. Even so, UK gas prices have jumped by about 75% over March, underscoring ongoing stress in energy markets as the blockade of the strait disrupts critical supply routes.