Markets This Morning
British wholesale gas prices are sharply higher on Tuesday morning as renewed direct attacks between the US and Iran raise concerns over prolonged supply disruption. The NBP Oct-26 contract is up 10.68p at 175.5p/therm, while Winter-26 is up 8.21p at 173.55p/therm. The US struck two Iranian rocket launchers on Larak Island on Sunday, saying they were preparing an attack involving sea mines in the Strait of Hormuz. Iran retaliated with missiles against US assets in Jordan, prompting President Trump to threaten further strikes. Supply fundamentals are also providing support. Norwegian flows via Langeled are down 26 mcm/d on the day at 23 mcm/d amid extensive maintenance at Norwegian facilities, while the UK-Belgium IUK Interconnector is shut for 20 days of scheduled maintenance. On the prompt, the NBP Day-Ahead contract is up 7.25p at 173.25p/therm. Brent crude is also trading higher, up $1.84 at $92.32/bbl.
Yesterday in Summary
The UK gas and power markets were closed for the bank holiday yesterday, while oil settled 2.71% higher following renewed US-Iran tensions. Tehran fired missiles at American assets in Jordan in retaliation for a US strike on Larak Island in the Strait of Hormuz, ending a month of relative calm. The US said it had targeted Iranian rocket launchers believed to be preparing an attack involving sea mines. Trump told Fox News, “We’re going to hit them hard.” Following the retaliation and Trump’s threat to escalate the conflict, front-month Brent settled $2.39 higher at $90.49/bbl
