21.07.202606:40:07UTC+00UK Gas Slips on Middle East Diplomacy Hopes

UK natural gas prices fell below 140 pence per therm on Tuesday, retreating from a four-month high in the previous session, as markets weighed reports of renewed diplomatic efforts to ease tensions between the US and Iran. Tehran said it had received a proposal from mediators for a 10-day ceasefire aimed at reviving last month’s interim agreement, raising hopes for a potential de-escalation of the conflict.

The latest developments come as the US has carried out a tenth consecutive day of strikes against Iran, while Tehran continues retaliatory attacks on neighboring countries. The conflict has brought tanker traffic through the Strait of Hormuz to a halt and delayed the expected recovery in Qatari LNG exports, intensifying competition for cargoes between European and Asian buyers.

These disruptions are making it increasingly difficult for Europe to rebuild gas reserves ahead of winter. Storage facilities are currently less than 54% full, compared with around 64% at the same point last year.