Markets This Morning
UK wholesale gas prices opened higher again this morning as the conflict between the U.S. and Iran to control the Strait of Hormuz continues. Late on Tuesday evening, U.S. President Trump stated his intentions to increase the intensity of the conflict unless Iran “get to the table and negotiate”. This morning Iran have restated that they have closed the Strait of Hormuz to all traffic as long as the U.S. continue their hostilities in the region. The front-month NBP contract is trading at 132.00p per therm, up 3.85p since the market opened. The crude oil markets are largely unchanged from yesterdays close, with the front-month Brent contract trading down $0.07 at $84.66 per barrel.
Yesterday in Summary
UK wholesale gas prices and crude oil markets extended gains on Tuesday as a third consecutive night of U.S. strikes on Iran bolstered doubts over the memorandum of understanding’s ability to end the conflict. The continued conflict and a reinstation of the U.S. blockade of Iranian ports pushed the geopolitical risk premium higher. The front-month NBP contract gained 4.00p to settle at 128.15p per therm supported by LNG supply security concerns. Crude oil prices touched a four-week high after Iranian retaliatory strikes on Jordan and Bahrain, with the Brent front-month contract peaking at $87.55 per barrel before easing to settle at $84.73 per barrel, up $1.43 on the day.
