Prices steadied near their recent highs, finishing the week slightly up after three
weeks of strong gains. The US announced a sweeping new sanctions package
against Iran, while Tehran approved transit fees for ships using the strait and
threatened to seize vessels that ignore them. Omani mediation continued
midweek and briefly cooled prices, but the truce window has now formally
lapsed, and over the weekend the US struck Iranian rocket launch sites on the
strait, the first military action in weeks.
Supply tightened again closer to home. A compressor fault at Norway’s Asgard
field cut flows to Britain sharply just as earlier outages were clearing, and
European storage remains well below par for the season, with Britain and
Germany only around half full while southern Europe is far better placed. Notably,
UK prompt power softened as wind held up and late-summer demand stayed
light, a reminder that the strength sits in the gas curve rather than any domestic
scarcity today.
With hostilities resuming and sanctions tightening, the market opens September
firmly supported.