Iran ware continues to push prices upwards

Gas prices resumed their upward trajectory on Tuesday with the Iran war continuing to provide strong support.

Reports emerged that the Shah gas field in the UAE (the countries largest) was set ablaze following a drone attack, further impacting regional production capacity which has been significantly impacted by the conflict.

The strike is considered the first direct attack on an operating gas field, in contrast to previous incidents that targeted refineries and export terminals.

LNG deliveries have slowed in March when compared to the same time last year, 15 had arrived in the period 1st to 18th March 2025 but only 9 have arrived so far this month.

Baseload power prices posted small gains yesterday, lifting in line with gas and crude oil.

Renewable generation has been strong over the past week, which is helping to contain bullishness across the prompt and near-curve.

According to data from Elexon, wind alone met 49% of the power generation mix on Tuesday, a stark contrast to gas (CCGT) which met only 5.1% over the same period.

Carbon prices fell 3.5% yesterday after the EU indicated that it was considering making more allowances available to help bring down emissions trading costs amidst strength across fossil fuel markets since the onset of the War in Iran. The closely linked UKA benchmark posted comparable losses.

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Price commentary courtesy of Crown Gas and Power