Markets This Morning
Energy prices are continuing to rise this morning as Iran have threatened the U.S. with “economic warfare” in response to the latest U.S. strikes on Iranian infrastructure. Tanker transit through the Strait of Hormuz remains well below the pre-war average with both warring nations actively targeting vessels. Operations at energy facilities across four Saudi Arabian cities have been halted following yesterday’s attacks from the Yemeni Houthis, another conflict escalating in its stakes. UK wholesale gas prices are trading up 5.14p since the market opened at a price of 187.39p per therm. Crude oil prices are seeing a less pronounced rise, the front-month Brent contract is up $1.77 this morning at a price of $98.77 per barrel.
Yesterday in Summary
UK wholesale gas prices increased through the day yesterday as the U.S.-Iran conflict escalated, with Iran warning it will target Middle East energy infrastructure in retaliation for further U.S. attacks. Shipping data showed Strait of Hormuz transits had fallen to an average of just 10 vessels per day over the past 10 days, the lowest since May. At the close, front-month NBP was up 3.44p at 182.25p per therm. In the crude oil markets, a Houthi attack on a Saudi refinery and U.S. strikes on three Iranian oil tankers over the weekend pushed prices to a six-week high, with Brent for front-month delivery climbing $1.01 to settle at $97.31 a barrel.
