Prices react to the latest news in the Middle East
The market extended the upward momentum seen ahead of the bank holiday, quickly moving through the 130p/therm psychological threshold and settling 8.1p/therm above the previous close.
President Trump’s deadline for Iran to reopen the Strait of Hormuz by Wednesday 01:00 UK time likely inflated risk premium across the near-curve, with the US leader issuing an expletive threat to Iran, and later suggesting to press that if a deal was not reached quickly, he was considering “blowing everything up and taking over the oil“.
This morning, markets have entered bearish mode, with the Winter 26 front-season contract falling to its lowest level in almost a month, amidst a widespread, rapid decline across the wider energy complex.
A sharp rise in renewable generation capped upside potential for baseload power contracts, paving the way for a pronounced sell-off on Wednesday morning.
Elexon data showed wind output dominating the generation mix, accounting for 41.3% of supply and making it the single largest source on the system.
More broadly, low-carbon generation met close to 60% of overall demand, easing reliance on gas-fired power.
This abundant renewable supply weighed on prompt prices and undermined near-term contract support despite broader market volatility.
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Price commentary courtesy of Crown Gas and Power 