A quieter stream of news reports from the Middle East eases markets
A relatively quiet stream of news reports from the Middle East allowed the NBP to resume its downward trajectory on Tuesday.
Market attention remained focused on geopolitical risk, though recent developments were perceived as stabilising rather than escalatory.
The ceasefire between the United States and Iran appears to be holding, even after President Trump authorised a military blockade of Iranian ports in the Gulf of Persia earlier this week.
Separately, Israel and Lebanon met in Washington, D.C. for their first high-level diplomatic engagement since 1993. Together, these developments eased immediate concerns of a broader regional escalation, weighing on risk premiums.
Baseload power prices continued to slide on Tuesday, alongside a softer tone across wider energy markets.
According to data from Elexon, wind generation increased modestly on Monday, covering a larger share of GB demand overall.
Gas nonetheless remained the single largest generation source, maintaining system reliance on fossil fuels, although cooling natural gas, oil and carbon prices continued to weigh on baseload power.
Broader sentiment was also shaped by ongoing Middle East developments, tempering risk premiums across prompt and near-curve contracts amid reduced volatility in related markets.
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Price commentary courtesy of Crown Gas and Power 