Friday 25th September 2026

Prices close higher on little sign of diplomatic progress.

Gas and power

Power and gas prices moved higher on Thursday as diplomatic discussions between the US and Iran showed little sign of progress on the third day of the UN General Assembly. No formal US response to Iran’s proposal for reopening the Strait of Hormuz was reported, leaving markets with limited confidence that an agreement is close. Meanwhile, Chinese President Xi Jinping arrived in Washington for a state visit hosted by President Trump. The conflict in Iran is expected to feature prominently on the agenda, although it remained unclear whether China would be able to play a meaningful mediating role and help bring the US and Iran back to the negotiating table.

Adjacent markets

With limited progress in U.S.-Iran talks, hopes for a diplomatic breakthrough continued to fade, supporting oil prices throughout yesterday's session. Iran reiterated that diplomacy must continue but warned it would not bow to U.S. pressure, with markets awaiting the U.S. response to their proposed peace deal. Adding to bullish sentiment, reports suggested the U.S. is considering a diesel export ban, potentially further tightening global supplies. Elsewhere, bond yields continued to rise, with the U.S. 30-year Treasury yield hitting its highest level since 2004. The move, driven by continued energy price concerns and ongoing government spending, also put pressure on equity markets.

Closing prices