FX.co ★ UK Natural Gas Prices at Over 5-Week High

UK natural gas futures climbed to 120 pence per therm, the highest level in more than five weeks, amid persistent concerns about further disruptions to shipping through the Strait of Hormuz. President Donald Trump warned Iran to accept a deal or face “annihilation,” stating that his patience with Tehran was wearing thin. His comments followed Iranian claims that roughly 30 vessels had been allowed to pass through the Strait since Wednesday evening. Earlier in the week, Washington and Tehran failed to reach agreement on a US-drafted peace proposal, leaving the strategic waterway largely closed. Since the conflict began in late February, about one-fifth of the world’s LNG supply has been disrupted. Although most gas exported from the Persian Gulf is destined for Asia, the interruption has tightened global supply and intensified competition, heightening concerns in Europe as the region seeks to rebuild inventories ahead of next winter. UK gas prices have jumped more than 11% so far this week.