UK gas prices surged by 25% overnight following Iranian missile attacks on Qatar’s liquefied natural gas facilities. The strikes targeted the Ras Laffan hub, causing large fires and extensive damage, according to Qatar Energy.
Gas futures had traded between 125p and 132p per Therm in recent days, closing Wednesday at around 140p. Prices rocketed to 174p Thursday morning before easing slightly to 169p as of 8am GMT.
Britain relies on imports for a significant portion of its natural gas, while Europe faces lower reserves after a particularly cold winter. Although the UK produces some gas from the North Sea, it also depends on supplies from Norway and other European nations.
European gas markets mirrored the trend, rising over 20% on Thursday. Oil prices also jumped, with Brent crude climbing 7% to $114 a barrel as Middle East attacks escalated.
Chris Bryant, minister of state for trade, described the surge as “a really big moment for the UK economy.” He urged a faster transition to renewable energy to reduce reliance on volatile fossil fuel prices. Bryant added that Chancellor Rachel Reeves would examine potential adjustments to the fuel duty cap, stressing that decisions made now could benefit the UK long term.
The Common Wealth thinktank suggested households could save up to £200 if gas-based pricing were removed from electricity markets. The group urged policymakers to shield consumers from volatile gas costs.
Meanwhile, U.S. President Donald Trump commented on the attacks, stating he had no prior knowledge of Israel’s strike. He warned that further assaults on Qatar’s gas sites could trigger a severe response from the United States.
Qatar Energy had already halted production earlier this month after repeated disruptions to its operations. Analysts warn that prices may remain high as geopolitical tensions in the Gulf persist, affecting households and businesses alike.
The recent UK gas surge underscores the country’s exposure to global energy risks and highlights the urgent need for energy independence and a transition to cleaner power.
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