Prices ease amid Trump claims of positive talks with Iran

NBP prices retreated during morning trade after Donald Trump claimed in a social media post that he had delayed US strikes on Iranian power infrastructure following ‘productive conversations’.

Iran later denied involvement in the two days of negotiations that Trump had claimed.

There was a pronounced effect on bearish sentiment however, with the Summer 26 front-season contract diving to a low of 135p/therm (4.6p/kWh).

Despite repeated attempts however, it was unable to break below what appeared to be a key psychological level.

With seasonal maintenance in Norway starting up, low European storage and an uncertain global LNG supply picture, any signal that the Strait of Hormuz could reopen is exerting enhanced pressure on the near curve.

Power prices saw less intraday volatility than gas counterparts, though they did ultimately post reductions when compared to Fridays close as signals that an end to the Iran war could be close filtered into the wider energy complex.

Alongside natural gas, the crude oil benchmark posted substantial losses of 10.9% on Hormuz optimism. Looking at generation fundamentals, wind power doubled versus Friday, and forecasts suggest it is primed to increase moving further into this week, easing system constraints for the short-term.

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Price commentary courtesy of Crown Gas and Power