Prices jump following US led strikes on Iranian military and leadership targets
Gas prices held steady at the NBP on Friday as market participants eyed US-Iran negotiations in Geneva.
Supply-side fundamentals saw minimal change, with a slight decrease in flows from Norway and UK domestic production being offset by a modest increase in LNG sendout flows.
Tensions came to a head over the weekend however, after the US and Israel conducted extensive strikes on Iranian military and leadership targets.
Iran responded by launching missiles and drones toward Israel and US military sites across several Gulf countries.
Critically, Iran has also closed off access to the Strait of Hormuz, halting the passage of LNG and oil shipments via the critical supply route.
Baseload power prices eased off slightly on Friday, mirroring weakness on the carbon market and forecasts of muted demand on both power and gas markets over the next fortnight.
British power prices have seen sharp gains this morning after energy markets were spooked by strikes across the Middle East, prompting fears of a wider conflict that could disrupt global fossil fuel flows, thus adding support to baseload power prices.
Continued monitoring of supply fundamentals and regional tensions will remain key drivers this week, with participants cautious that any further escalation could trigger additional risk premiums across the curve.
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Price commentary courtesy of Crown Gas and Power 