08.04.202606:45:08UTC+00UK Natural Gas Prices Drop Sharply

UK natural gas futures plunged more than 18% to below 110 pence per therm, their lowest level in over a month, after the United States and Iran agreed to a two-week ceasefire that includes reopening the Strait of Hormuz. The deal was finalized less than two hours before President Donald Trump’s self-imposed deadline, after which he had threatened to “wipe out a whole civilization.”

Iran said safe passage through the strait would be “possible” with coordination from its armed forces, while Trump cited progress in talks and pointed to a 10-point proposal from Tehran that he called a “workable basis” for a more durable peace framework. The temporary truce gives both sides a brief window to negotiate a longer-term agreement to end the six-week-old war, which has severely disrupted global energy flows.

Since the conflict began in late February, traffic through the Strait of Hormuz has fallen sharply, and roughly 20% of global LNG supply from Qatar remains offline.