Prices rise again amid reports of attacks on commercial shipping in the Strait of Hormuz

Thursday marked a third consecutive day of gains at the NBP , fuelled by continued uncertainty over a potential resolution to the US–Iran conflict and reports of attacks on commercial shipping in the Strait of Hormuz.

Markets most reliant on cargoes from the Persian Gulf, including but not limited to South Korea, Japan, Pakistan and Bangladesh, have begun taking emergency action and intervention, curtailing gas-fired power generation and releasing large quantities of gas and oil from storage.

European countries, while not facing immediate supply disruption, have started cancelling flights as the global supply of aviation fuel begins to tighten. All of this highlights the far-reaching effects of the conflict.

Baseload power prices followed the wider energy complex higher, despite a recovery in renewable generation over the past couple of days.

According to data from ICE, the Brent Crude benchmark has risen 12.8% since Friday’s close, lifting back to levels just short of the late March/early April peak that was sparked by the war.

This coincided with an upward correction on the Rotterdam Coal benchmark, and there are fears that a prolonged disruption of LNG cargoes via the Strait of Hormuz could begin to squeeze regional power generation.

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Price commentary courtesy of Crown Gas and Power