Markets This Morning
As the conflict between the U.S. and Iran over the Strait of Hormuz is continuing to escalate, Yemeni Houthis have attacked two Saudi Arabian tankers in the Red Sea creating another disruption of a key supply route out of the Gulf state region. UK wholesale gas prices continue to rise, with the new supply shock being felt strongest by the crude oil markets. The front-month Brent contract is up $3.75 since market open, trading at $97.82 per barrel, its highest price since June 3rd. NBP contracts are seeing more marginal gains this morning, with the front-month up 0.37p at a price of 151.80p per therm.
Yesterday in Summary
UK wholesale gas extended its gains on Wednesday as hostilities between the U.S. and Iran continued to escalate. Reduced Strait of Hormuz transit, the Houthi threat of a Saudi port blockade, and reports of tankers diverting through Suez all pushed the geopolitical risk premium higher. Crude oil gains continued as the front-month Brent contract traded above $95 per barrel for the first time since June 11th. The front-month NBP contract gained 6.86p to settle at 151.43p per therm, and the Day-ahead price added 5.96p to close at 149.873p per therm. Front-month Brent settled at $94.07 per barrel following a $3.06 rise.
