This morning
Brent crude oil is trading higher this morning and looks set to increase for a fifth consecutive session, with the front-month contract reaching a fresh three-week high as geopolitical tensions continue to support the market. Overnight, President Trump warned of an “Economic D-Day” for Iran, further escalating regional tensions following the UAE’s decision to suspend all financial and economic transactions with the country. The latest comments from Trump have also provided further support to gas prices in early trading, with the front-month contract gaining more than 3.00p/th and last trading at 159.50p/th. Gas prices further along the curve are also being affected, with Winter-26 and Summer-26 both trading more than 2.00p/th above Wednesday’s settlement.
Yesterday in summary
Gas prices corrected marginally lower on Wednesday following Tuesday’s late rally, although the market remains supported by ongoing geopolitical tensions and uncertainty around the Strait of Hormuz. These concerns also continued to support crude oil, with Brent rising to a four-week high as reduced shipping through the Strait increased the risk premium. Carbon prices edged lower as cooler temperatures, strong renewable generation and weaker power demand reduced the need for thermal generation. GB baseload power prices also tracked lower, following losses in gas, while increased wind generation and the end of the heatwave are expected to further weigh on demand.
