Prices ease following brief reopening of the Strait of Hormuz

Gas prices eased at the NBP on Friday following a brief reopening of the Strait of Hormuz.

Contracts across the curve moved lower, with the sharpest declines observed at the front-end. The Winter 26 contract settled around 3p/th (0.102p/kWh) below the previous close.

Developing reports of the ceasefire agreement between the US and Iran likely added downward pressure during afternoon trading after President Trump stated on Truth Social that Iran had agreed to “never close the Strait of Hormuz again” for the duration of the ceasefire, which is scheduled to run until April 22nd.

However, despite this announcement, Iran closed the Strait again over the weekend following the US seizing an Iranian flagged cargo vessel.

Power prices edged lower on Friday, broadly tracking the movements of their gas counterpart, although declines were more restrained.

The developing situation in the Middle East likely contributed to the downward pressure, while a sharp drop in wind-generated power perhaps helped to limit the drops to near dated contracts prices.

According to National Grid data, wind-output fell by more than 32% day on day, increasing reliance on CCGT offtake, which rose by over 25% over the same period.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Price commentary courtesy of Crown Gas and Power