Thursday 20th August

Power and gas prices settle marginally lower as markets await direction from US-Iran developments

Power and gas markets traded within a relatively narrow range on Wednesday, ultimately settling lower as the session passed with little in the way of fresh developments regarding the US–Iran conflict. While the pause in direct military action between the two countries remained in place, there was no meaningful progress towards restarting diplomatic talks, with neither side appearing willing to make the concessions needed to move negotiations forward.

Oil prices extended their gains yesterday, reaching a three-week high amid escalating geopolitical tensions in the Middle East. The UAE's decision to suspend all financial and economic transactions with Iran in retaliation for an alleged Iranian missile attack heightened market concerns over further regional escalation and the reopening of the Strait of Hormuz. Elsewhere, UK equity markets came under pressure following the rise in UK inflation in July, with both the FTSE 100 and FTSE 250 declining as investors reassessed interest rate expectations.

NBP (p/therm)

UK Base (£/MWh)

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Day on Day

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Day on Day

Sep-26

156.42

-0.81

126.125

-0.55

Oct-26

157.39

-0.64

125.16

-0.7

Nov-26

160.4225

-0.7

135.66

0.27

Q4-26

160.0765

-0.61

131.675

-0.09

Q1-27

155.9055

0.46

129.72

0.78

Q2-27

104.491

0.8

88.995

0.03

Win-26

158.003

-0.08

130.715

0.25

Sum-27

100.8875

0.8

86.425

0.15

Win-27

99.3825

0.74

88.565

0.16

Sum-28

71.4995

0.64

66

0.37

Win-28

78.489

0.78

73.635

0.2