Market remains nervous alongside ongoing heatwave and ongoing situation in Middle East

The market traded in a rangebound fashion on Thursday, with the Winter 26 front-season contract fluctuating close to 145p/therm (4.95p/kWh) as market participants cautiously assessed the geopolitical situation in the Middle East alongside an ongoing heatwave in parts of Europe.

It was another night of heavy strikes exchanged between the US and Iran. The US carried out another two-hour long burst of strikes across several Iranian provinces.

Iran also continued to target US bases in Jordan, and the IRGC expanded its targets, launching drone strikes against facilities in Kuwait early Friday morning.

Several wildfires continue to burn across pockets of the continent as a result of consecutive summer heatwaves, this includes a 150-hectare fire in Suffolk, just 3km from the Sizewell B nuclear plant.

UK power prices also continued to trade largely sideways on Thursday, struggling to find much support for a bullish or bearish breakout amid market wide uncertainty.

Gas-fired power continued to serve as the single largest source of generation in the national grid, at an average of 8.4GW (27.3%) with wind output lagging behind at 5.6GW (18.2%).

Sizewell B, which is alarmingly close to an ongoing wildfire in Suffolk, has been placed on high alert but emergency services and EDF have confirmed there is no immediate danger to the station (which is the UK’s largest) and the plant remains operational for now.

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Price commentary courtesy of Crown Gas and Power