Daily market report Thursday 9 April

Power and gas prices fall sharply on news of a two week US–Iran ceasefire

Gas and power

Power and gas prices closed lower on Wednesday as optimism around a long-lasting peace agreement in the Middle East continued to build following the announcement of a two week ceasefire. However, despite reports that the Strait of Hormuz had reopened as part of the agreement, shipping activity remained limited, with vessels seeking greater clarity after Iranian coastguards warned that ships attempting passage without the appropriate permissions would be “targeted and destroyed.”

Adjacent markets

Global equity markets rallied yesterday following the announcement of a two week ceasefire agreement between the US and Iran, which is expected to see the Strait of Hormuz reopen during the ceasefire period while finer details of a longer term settlement are negotiated. Mining and airline related stocks were among the strongest gainers. Meanwhile, oil markets plunged by around 15% on the news, with prices falling back below the $100 per barrel mark.