Markets This Morning
Despite continued U.S. attacks in Iran overnight, UK wholesale gas prices are trading lower in early exchanges. The front month has surrendered much of Wednesday’s gains, last trading at 142.35p/th, a decline of over 4p from the previous settlement. The losses have not been confined to the prompt month, with the Winter-26 contract also trading over 2% lower. Overnight reports that a Qatari LNG tanker had been granted safe passage via the Iran-designated route through the Strait of Hormuz have likely provided some reassurance to markets. In crude oil, the front month Brent contract is trading broadly in line with Wednesday’s settlement, last trading at $90.73/bbl.
Yesterday in Summary
UK wholesale gas prices surged on Wednesday as renewed Middle East tensions heightened concerns over potential disruption to global energy flows. Reports of further military action in the region, alongside continued uncertainty surrounding key supply routes, provided strong support to the gas market, with Aug-26 settling at 146.43p/th. Crude oil prices also rallied sharply, with Brent rising to $90.74/bbl as supply concerns were compounded by falling U.S. inventories and expectations of tighter OPEC+ output management. Carbon prices remained supported by strength across the energy complex, while GB baseload power moved higher as elevated gas prices and constrained continental imports increased reliance on gas-fired generation.
