Power and gas prices rise sharply as Strait of Hormuz optimism fades
Gas and power
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Power and gas prices rose yesterday as optimism over a near-term reopening of the Strait of Hormuz faded. Despite no major developments, prices strengthened significantly as markets grew less confident that a deal would be reached soon. Talks between Iran and Oman are reportedly in their final stages but remain dependent on the US meeting several conditions, including compensation and end to sanctions and military action. The US had yet to officially comment, but market consensus was largely that they were highly unlikely to agree. |
Adjacent markets
Oil prices moved higher yesterday, gaining around 3% during the session after Iran stated that its proposed agreement with Oman to reopen the Strait of Hormuz would be contingent on the US meeting several conditions, including the lifting of sanctions and the payment of reparations for damages, reducing market optimism around a swift reopening. Meanwhile, equity markets were mixed, with UK indices closing lower amid the geopolitical uncertainty, while European markets managed modest gains after the latest Sentix survey indicated an improvement in investor sentiment across the eurozone.
|
NBP (p/therm) |
UK Base (£/MWh) |
|||
|
Close |
Day on Day |
Close |
Day on Day |
|
|
Sep-26 |
149.823 |
13.850 |
121.805 |
6.240 |
|
Oct-26 |
150.188 |
13.900 |
119.555 |
7.490 |
|
Nov-26 |
153.375 |
13.220 |
130.255 |
6.860 |
|
Q4-26 |
152.722 |
13.430 |
125.605 |
6.610 |
|
Q1-27 |
146.046 |
12.060 |
121.940 |
6.280 |
|
Q2-27 |
99.243 |
5.130 |
86.470 |
3.310 |
|
Win-26 |
149.403 |
12.750 |
123.730 |
6.440 |
|
Sum-27 |
95.825 |
4.970 |
84.100 |
2.640 |
|
Win-27 |
94.239 |
4.900 |
85.440 |
2.110 |
|
Sum-28 |
69.779 |
2.650 |
65.360 |
1.090 |
|
Win-28 |
77.229 |
2.510 |
73.025 |
0.870 |
Closing prices
|
Closing price as of 10 Aug 2026 |
NBP (p/therm) |
Sep-26 |
149.82 |
Q4-26 |
152.72 |
|
|
Q1-27 |
146.05 |
Win-26 |
149.40 |
Sum-27 |
95.83 |
|
|
UK Base (£/MWh) |
Sep-26 |
121.81 |
Q4-26 |
125.60 |
||
|
Q1-27 |
121.94 |
Win-26 |
123.73 |
Sum-27 |
84.10 |