FX.co ★ UK Gas Prices at Over 2-Week High

UK natural gas prices climbed to 105.7 pence per therm on the first day of July, their highest level in more than two weeks, as traders monitored developments in US–Iran negotiations. Envoys of President Donald Trump arrived in Doha on Tuesday, but Qatari mediators downplayed the likelihood of a significant breakthrough, noting that US officials were not expected to hold direct talks with their Iranian counterparts.

UK gas prices fell 5.7% in June and dropped 18.5% over the second quarter, following an interim agreement between Washington and Tehran that unwound most of the sharp gains made at the height of geopolitical tensions. Still, the decline has been partially cushioned by tight physical market conditions in Europe.

European gas storage sites are around 48% full, well below the 56% level recorded at the same time last year and the five-year average of 61%. Simultaneously, an intense heatwave across the continent is pushing up demand from power generators as they work to meet heightened cooling needs.