Markets This Morning
A sharp escalation of the conflict in the Middle East has driven further increases across gas and oil markets this morning. The U.S. has claimed to have destroyed five Iranian oil tankers while Iran’s Revolutionary Guard said it attacked 10 ships and fired ballistic missiles at a base in Jordan used by the U.S. military. The heightened tensions have driven the front month Brent contract above the $100 a barrel mark to last trade at $100.46, a gain of $2.54 day-on-day. Reports that an LNG tanker in the Emirati port of Khor Fakkan had been damaged in strikes has added to supply concerns, with the front month NBP contract showing a gain of 7.09p so far to go through at 195.89p per therm.
Yesterday in Summary
Crude oil and UK wholesale gas markets strengthened on Tuesday as escalating Middle East tensions heightened concerns over global energy supplies. Houthi attacks on Saudi energy facilities raised fears of a broader regional conflict and increased the risk of supply disruptions beyond the Strait of Hormuz. Expectations of stronger competition from Asian buyers for LNG cargoes, alongside Norwegian supply constraints added to the upward pressure. The front month NBP contract increased by 6.55p to settle at its highest close since August 2022. Meanwhile, the front month Brent contract gained 92 cents day-on-day to close out the session at $97.92 a barrel.
