Prices increase further amid ongoing conflict in the Middle East

Bullish sentiment continued to support higher gas prices on Friday as the ongoing conflict between the US and Iran remained a key market focus.

On Friday, Iran targeted a US military installation in Jordan, reportedly resulting in casualties among US personnel, while overnight strikes on Iran continued for a ninth consecutive day.

Oil markets remain highly volatile, with ICE data showing Brent Crude gained by around $4/bbl day-on-day, likely supported by Iranian warnings that oil flows through the Strait of Hormuz will stop should US military action continue.

Baseload power prices were mixed on Friday, with upside posted at the front-end but contracts further along the curve showing some muted downside.

Although ongoing supply concerns continued to provide support, a sharp increase in wind generation perhaps helped cap gains to power prices.

National Grid data shows wind-output rose by more than 50% day-on-day reducing reliance on gas-fired generation; CCGT offtake fell by approximately 33% over the same period.

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Price commentary courtesy of Crown Gas and Power