Fresh US economic sanctions against Iran continues to drive up prices

The NBP continued its upward momentum on Monday, climbing for a seventh consecutive session following the announcement of fresh US sanctions against Iran.

Dubbed ‘Operation Economic Outcast’ by the US Treasury Secretary, these new financial measures also target key allies to force Tehran back to the negotiating table.

Beyond geopolitical tensions, the loss of most Persian Gulf LNG supply continues to strain global energy markets.

According to data from Gas Infrastructure Europe, underground storage levels across the EU stood at roughly 63% as of Sunday, nearly 13 percentage points lower than the same time last year.

This ongoing shortfall has been driven by an extraordinary run of six heatwaves across the continent alongside broader pressures on global supply.

Baseload power prices pushed higher alongside natural gas on Monday, matching the NBP’s seven-day bull-run.

Subdued renewable output across Great Britain throughout the previous week compelled grid operators to place a heightened reliance on gas-fired generation, while parallel gains in Carbon EUA prices elevated underlying generation expenses to maintain an upward trajectory across forward power contracts.

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Price commentary courtesy of Crown Gas and Power