Markets This Morning
Energy prices have retreated across the board this morning following reports that Tehran has submitted a new proposal to Washington outlining a seven-day plan to reopen the Strait of Hormuz and resume broader negotiations aimed at resolving the US-Iran conflict. Iranian Foreign Minister Abbas Araghchi said in New York late on Thursday that mediators had presented the White House with a proposal that could see the strategic waterway reopen within a week, raising hopes of an easing in global energy supply disruptions. The front-month NBP contract is down 4.96p at 182.60p/therm, while Brent crude has reacted more cautiously, shedding $0.41, or 0.38%, to trade at $106.19/bbl.
Yesterday in Summary
UK wholesale energy prices rose on Thursday as fading hopes of a diplomatic resolution to the US-Iran conflict and continued disruption to Middle Eastern energy supplies supported markets. Front-month NBP gained 8.08p to 187.56p/therm, with extended Norwegian maintenance adding further support, while GB baseload rose £6.95 to £148.25/MWh. European carbon strengthened, with Dec-26 EUA gaining 1.1% to €86.96/tonne. Brent crude climbed 3.4% to $106.60/bbl following Houthi missile attacks on Saudi Arabia, although reports of renewed US-Iran negotiations tempered gains.