UK Assures Gas Supply Security Amid Middle East Conflict

The UK government has assured the public that natural gas supplies remain secure despite low storage levels and disruptions from the escalating conflict in the Middle East, where US and Israeli airstrikes on Iran have halted production at the world's largest liquefied natural gas facility in Qatar and prompted tanker diversions.

The conflict, which intensified about 10 days ago, has rattled global energy markets. Production at Qatar's Ras Laffan plant was suspended following reported strikes, and shiptracking data indicates at least five LNG tankers have been redirected from Europe to Asia since last week. Fears of broader disruptions, including a partial closure of the Strait of Hormuz—a key route for about 20 percent of global oil and gas flows—have driven up prices. UK month-ahead gas prices climbed to 137 pence per therm last week, more than double the 78.5 pence recorded before the escalation. Brent crude oil prices surged over 20 percent, peaking above 115 dollars a barrel before easing slightly to around 108 dollars.

National Gas, the operator of Britain's transmission system, reported storage at 6,999 gigawatt hours as of March 7, equivalent to roughly two days of...