UK natural gas futures jumped over 7% toward 118 pence per therm on Monday, recovering from a more than five-week low, as President Donald Trump ordered a blockade of the Strait of Hormuz after peace talks with Iran failed. The US military said it will begin a blockade of all Iranian ports at 1400 GMT on Monday but added that vessels not traveling to or from Iran will still be permitted to transit the strait. Trump also said the US will intercept vessels that have paid tolls to Iran for safe passage through the strait. Additionally, reports indicated that the US is considering fresh military strikes against Iran, which could jeopardize a two-week ceasefire reached last week. The developments have raised concerns that LNG flows through the strait, accounting for roughly one-fifth of global supply, could face prolonged disruption.
