Gas prices hit their highest level since December after climbing on Monday morning over fears around Russian pipeline supply.
UK natural gas futures climbed by 5.3% to 101.7p per British thermal unit throughout the morning, reaching their highest level in eight months.
Tom Roberts, chief executive of data firm Xterna Group noted the rise prompted concern over prices for the upcoming winter.
“The focus seems to be on geopolitics in general at the moment, yet these gas-intensive countries are consuming record levels of gas,” he said.
Though European countries have moved to ditch Russian gas since the start of the Ukraine war in favour of Asian stocks, confirmation that the latter had launched a counteroffensive near the crucial Sudzha intake point has stoked supply fears.
Oil prices also jumped on Monday morning, with Brent and West Texas Intermediate up 1.1% and 1.2% respectively.
“The immediate market concern will be attacks on Iran’s oil supply and infrastructure,” Commonwealth Bank of Australia (ASX:CBA) analyst Vivek Dhar commented.
“We see Brent oil futures trading between US$75 and US$85 a barrel in the short term.”