Markets This Morning
UK gas prices have increased sharply this morning after officials from Iran set out a list of demands for the U.S. Tehran will not agree to the reopening of the Strait of Hormuz unless Washington unblock Iranian ports, stop the attacks, lift sanctions, agree compensation for damages and unfreeze Iranian assets. Also, over the weekend, the Israeli PM rejected Trump’s 15-point plan for Gaza. The front month for the NBP has added 7.96p per therm to last trade at 143.91p while the Winter-26 contract is 6.34p higher at 143.02p. Prompt prices are tracking the front months higher with the Day ahead product gaining 6.47p in early exchanges. In the crude oil markets, Brent for October delivery is up almost a dollar a barrel at $84.47 a barrel. Carbon EUAs are moving in the opposing direction with contracts down 80 cent per tonne on average.
Yesterday in Summary
Brent settled higher for a third day in a row on Friday, but the global benchmark was still $4.36 a barrel down for the week. Uncertainty surrounding the Oman/ Iran talks saw prices fluctuate between gains and losses on Friday before the October contract settled $1.06 a barrel higher for the day. Earlier optimism that the talks could lead to the reopening of the Strait of Hormuz sent UK wholesale gas prices into negative territory with August falling almost 10.00p intraday. However, the sharp declines were partially recovered by the close and August settled at 135.95p per therm, down 0.96p. An unplanned outage at Norway’s Asgard field provided a lift to the Spot on Friday.
