UK Inflation Rises to 2.9% on Gas Costs

UK inflation rose to 2.9% in July, driven by higher gas prices, underscoring how energy costs are shaping the economy. European gas markets surged as geopolitical tensions around the Strait of Hormuz and broader Middle East risk triggered supply concerns, with storage levels hovering around 60% of capacity and below seasonal norms. This dynamic kept LNG shipments and imports in focus, as Asian buyers bid aggressively for available cargoes and European utilities faced tighter supply. Heatwaves across Europe boosted gas-fired power demand, further straining inventories and pressuring prices. The backdrop of stalled Iran-Oman negotiations and ongoing maritime disruptions has amplified market fears of tighter gas supplies into the winter.