As of early March 2026, the UK faces heightened energy security concerns with natural gas storage reserves equivalent to roughly 1.5–2 days of typical national demand, sparking widespread fears of potential shortages or sharp price spikes if disruptions persist.

This situation is exacerbated by the ongoing Iran conflict, which has severely restricted flows through the Strait of Hormuz, a chokepoint for about 20% of global oil and a significant portion of liquefied natural gas (LNG) and led to attacks on regional gas and oil infrastructure.

Stored Gas: Approximately 6,700–6,999 GWh (gigawatt-hours) in underground facilities, per National Gas data from early March 2026 (e.g., 6,999 GWh reported on March 7–8).

Equivalent Supply: Enough for about 1.5 days of average demand (often rounded to “two days” in headlines for emphasis). A comparable volume is held as LNG in import terminals.

Capacity Context: Total storage capacity is around 18,000 GWh (historically equivalent to up to 12 days of supply at peak), but current levels are at ~18% of that reduced capacity. LNG sites are over half full.

Year-on-Year Drop: Down sharply from ~18,000 GWh (or ~9,105 GWh at similar points) in March 2025, reflecting seasonal drawdown and limited replenishment amid global tensions.

The crisis stems from the US-Israel military actions against Iran (starting late February 2026), prompting Iranian retaliation:

• Strait of Hormuz Disruption: Iran declared the strait “closed” and threatened attacks on transiting vessels (e.g., “set ablaze”). Traffic has plummeted (80–90% drop reported), with multiple tankers struck by drones/projectiles, insurance withdrawn, and rerouting via longer paths (e.g., Cape of Good Hope).
• Infrastructure Attacks: Iranian forces targeted gas/oil facilities, including suspension of production at Qatar’s Ras Laffan (world’s largest LNG site) after strikes, halting significant global LNG output.
• Broader Impacts: ~20% of global oil/gas flows affected; European LNG diversions to Asia; UK wholesale gas prices hitting highs (e.g., premiums over European benchmarks).

Europe overall enters the refill season with low storage (~22–30% full, vs. 5-year average ~41%), amplifying risks if the strait remains disrupted for weeks/months.

Potential Consequences are:

• Price Spikes: UK gas already Europe’s highest; analysts warn of surges (e.g., Goldman Sachs: up to 130% if one-month full closure). Household bills could rise via the July 2026 cap.
• Economic Ripple: Inflation, higher energy costs, and supply chain strain possible — though no immediate blackouts expected due to import flexibility.
• Longer-Term: Renewed debate on expanding UK storage (e.g., Rough enhancements) vs. accelerating clean energy shifts.

This is a fast-moving story tied to the volatile Iran conflict, no major supply interruptions reported yet, but prolonged issues could escalate.

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Britain has just TWO DAYS’ worth of gas stored up – sparking fears of a supply shortage as Iran shuts the Strait of Hormuz and bombards gas and oil refineries

Daily Mail Online

Britain has just two days’ worth of natural gas in storage, sparking fears of a shortage crisis as the Middle East conflict shut down the world’s largest gas facility and Iran closed a key shipping channel.

The UK’s gas reserves have dwindled from 18,000 GWh last year to 6,700 GWh, enough for just 1.5 days of demand, according to new data published by National Gas. There is a similar quantity stored as liquefied natural gas (LNG). The Daily Mail Online has the story.

Europe is much better prepared to weather fluctuations in supply, with several weeks’ worth of gas stored up.

Traders have been exploiting the UK’s situation by charging it a premium price on gas, knowing it has no choice but to outbid its European competitors. The UK is now paying the highest wholesale gas price in Europe.

Disruption to the gas market is driven partly by the near-total closure of the Strait of Hormuz, through which around 20 per cent of the world’s natural gas and oil flows, and also by the shutdown of production in some places.

Qatar announced at the beginning of the week it had suspended production at Ras Laffan, the world’s largest natural gas facility, after it came under Iranian bombardment.

Meanwhile, oil prices are set to soon hit $100 a barrel and that could rise to $150 if the war drags on, industry experts warned. 

The spike in gas and oil prices came as:

• A ‘river of fire’ engulfed Iran after an oil spill ignited Tehran amid ongoing US-Israeli air strikes 
• Trump weighed up sending in special forces to secure Iran’s stockpiles of enriched uranium amid fears they could fall into the wrong hands 
• Iran appointed its new Supreme Leader but Israel vowed to ‘pursue every successor’ of Ayatollah Ali Khamenei 
• Donald Trump criticised Keir Starmer again, telling him ‘We don’t need people that join wars after we’ve already won’ 
• Foreign Secretary Yvette Cooper risked damaging the ‘special relationship’ further by mocking Trump
• Tony Blair rebuked Sir Keir for not backing Trump’s military action 

Natasha Fielding, head of gas pricing at Argus Media, a leading publisher of commodity data, said: ‘The price of gas in the UK has increased by more than almost anywhere in Europe. 

‘The UK gas hub price is now above the Dutch TTF [the main European gas hub] all the way from now until the end of May. Before this week, the UK was priced below the EU.’

She said this was partly because the UK’s meagre gas stockpiles leave us ‘more exposed to price spikes’, and added: ‘We can’t rely on withdrawing more from storage, so we have to get that gas from abroad.’

Ms Fielding said traders would be monitoring temperatures in Britain, and that if it gets cold, the UK would be more urgently compelled to outbid other countries for gas.

The UK used to have up to 12 days worth of gas in storage, but the system collapsed after successive government ministers pulled its funding.

National Gas data showed that gas stores were at 18 per cent of their former capacity on Friday, while LNG stores were just over half full.

A National Gas spokesman said the UK gets most of its gas from Norway and its own North Sea.

They told The Telegraph: ‘The UK benefits from a wide range of gas supply sources. These provide the flexibility needed to balance supply and demand.’

Meanwhile, fears of a significant spike in oil prices are also growing, driven largely by disruption to the flow through the Strait of Hormuz.

Read the full story here.