Markets This Morning
Energy markets climbed further this morning, with front-month UK NBP gas reaching its highest price since early April. The contract last traded up 3.85p at 128p/therm as the US reimposed a naval blockade of Iran and renewed attacks between Washington and Tehran heightened concerns over energy flows through the Strait of Hormuz. Amid the strikes, two UAE tankers were hit by Iranian cruise missiles in the southern lane of the Strait of Hormuz, in Omani territorial waters. Shipping data also showed the number of tankers transiting the strait fell to its lowest level in two months. Brent crude reached an intraday high of $87.38/bbl before retreating to $86.55, still $3.25 higher than yesterday’s close.
Yesterday in Summary
Energy markets surged on Monday as US-Iran tensions escalated sharply, with the collapse of their ceasefire and a looming US naval blockade of Iran’s coastline reigniting fears over Strait of Hormuz disruptions. UK gas led the charge, with the front-month contract up 6.96p to 124.15p/therm, dragging GB baseload power higher alongside tight wind supply and hot weather. Oil posted its strongest single-day gain since April, with Brent up 9% to $83.30/bbl, further supported by falling US reserves and Ukrainian strikes on Russian oil infrastructure. Carbon prices were comparatively subdued, settling at €80.11/tonne as traders stayed cautious ahead of the EU Commission’s policy package.
