Power and gas prices end the week at monthly lows
Gas and power
Power and gas prices fell to their lowest levels in over a month on Friday as renewed optimism over Middle East peace talks weighed on markets. Sentiment was boosted by a surprise 10‑day ceasefire between Israel and Lebanon, which participants saw as potentially easing broader negotiations between the US and Iran, with whom talks were rumoured to be scheduled over the weekend. While the initial market reaction was reserved after recent ceasefire disappointments, prices moved sharply lower later in the session after Iran’s Foreign Minister said the Strait would be fully reopened in line with the Lebanon ceasefire.
Adjacent markets
Friday saw a dramatic end to the trading week, with oil prices plunging to a five‑week low after Iran announced that the Strait of Hormuz was open to commercial shipping while the ceasefire remained in operation. The drop in oil prices was mirrored by a jump in equity markets, with the benchmark US S&P 500 hitting an all‑time high and recording its biggest weekly gain since April 2025. Carbon prices continued their recent upward trend during the week, with European EUA prices touching their highest level since the second week of February.
| NBP (p/therm) | UK Base (£/MWh) | |||
| Close | Day on Day | Close | Day on Day | |
| May-26 | 97.12 | -9.28 | 82.52 | -4.99 |
| Jun-26 | 95.11 | -9.47 | 85.38 | -5.07 |
| Jul-26 | 93.74 | -9.24 | 84.38 | -5.24 |
| Q3-26 | 94.73 | -9.14 | 84.35 | -5.23 |
| Q4-26 | 99.29 | -8.18 | 87.97 | -4.85 |
| Q1-27 | 99.31 | -7.75 | 88.70 | -3.84 |
| Win-26 | 99.30 | -7.97 | 88.07 | -4.44 |
| Sum-27 | 78.22 | -4.36 | 70.43 | -2.20 |
| Win-27 | 80.00 | -3.06 | 75.28 | -1.33 |
| Sum-28 | 62.02 | -2.56 | 59.84 | -0.30 |
| Win-28 | 68.71 | -1.67 | 68.62 | -0.79 |