Mixed market movement as US announces ceasefire has been extended

Gas prices edged higher on Tuesday as the US-Iran ceasefire deadline loomed without much evidence that a lasting peace agreement was going to be agreed.

Overnight, however, President Trump announced the ceasefire had been extended for an undetermined period, stating it would remain in place until Iran’s leaders submit a unified proposal and discussions are concluded.

While preparations for talks are reportedly underway in Islamabad, the timing and likelihood of meaningful negotiations remain unclear.

This uncertainty continues to underpin risk premiums across energy markets.

UK power prices also saw modest gains in yesterday’s session, despite a substantial increase in renewable output.

The baseload curve continues to mirror moves on gas and oil markets amid the tense and uncertain geopolitical situation in the Middle East.

According to data from Elexon, generation from wind, solar, biomass and pumped/hydro sources met over 58% of system demand across Tuesday.

Demand for gas-fired generation fell by more than half to just 3.4GW/10.4% over the same period.

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Price commentary courtesy of Crown Gas and Power