Monday 27 July

Power and gas prices see significant gains amid continued escalation in the Middle East

Gas and power

 Power and gas prices recorded significant gains last week as the conflict between the US and Iran continued to escalate, with hostilities extending to a thirteenth consecutive day by Friday. President Trump’s threats of “major military punishment”, attacks on vessels in the Red Sea by Houthi forces, and reports of an increased US military build-up in the region all heightened concerns over energy supplies, while hopes for a ceasefire faded as the week progressed. Closer to home, fundamentals were somewhat more positive, with cooler temperatures across Europe helping to ease pressure on French nuclear generation, reducing output curtailments from around 10% to 7% over the course of the week. 

Adjacent markets

 Oil prices fell over 3% on Friday but remained set for strong weekly gains amid concerns over Red Sea disruptions and escalating US-Israeli tensions with Iran. Global equities also weakened, with US stocks heading for weekly losses as AI spending concerns and tariff uncertainty weighed on sentiment. In Europe, the ECB held rates steady, while improving business surveys pointed to a modest recovery in Germany and France. 

Closing prices