Daily Market Report - Thursday 3rd September 2026

Gas and power

 Power and gas markets closed higher on Wednesday, with contracts further along the curve recording the strongest gains. Prices were supported to new highs by an escalation in the conflict between the US and Iran, following new attacks which exacerbated concerns over LNG flows through the Strait of Hormuz and European gas storage levels this winter/next summer. Support also stemmed from reports of intensified Russian attacks on energy infrastructure ahead of winter, potentially increasing demand across Europe.  

Adjacent markets

 Oil markets moved higher again yesterday, reaching their highest levels since July, as escalating tensions between the US and Iran continued to support prices and weigh on market sentiment. There appeared to be little sign of a de-escalation, as both sides continued to exchange threats. Risks to shipping through the Strait of Hormuz remained extremely high, after Iran claimed that two oil tankers exploded following incidents involving sea mines. Elsewhere, US equities rose yesterday as strength in AI-related stocks outweighed negative sentiment stemming from Middle East tensions and pressure from elevated bond yields. 

Closing prices