Daily market report Wednesday 22 April

Power and gas prices rise on escalating geopolitical tensions

Gas and power

Power and gas prices moved higher on Tuesday, reversing recent losses as hopes for a ceasefire continue to fade. Islamabad has now formally acknowledged for the first time that Iran’s participation in upcoming talks is not guaranteed, adding another layer of uncertainty. At the same time, President Trump adopted a more aggressive tone, indicating that military action remains a possibility while stressing that forces are ready to act if needed. If Iran ultimately decides not to attend or negotiations break down, this rhetoric is likely to further increase market uncertainty. 

Adjacent markets

Oil prices moved higher on Tuesday after reports indicated that Iran remained undecided on whether to send a delegation to peace talks scheduled in Islamabad on Wednesday. The lack of progress in negotiations also led to reports that the US “expects to be bombing” should a deal fail to materialise, heightening escalation risks and reinforcing concerns over prolonged supply disruption from the region. Meanwhile, the US dollar strengthened against the British pound following the release of retail sales data showing stronger than expected consumer spending.