Tuesday 16 June daily market report

Prices drop lower on preliminary US–Iran peace deal

Gas and power

Prices moved lower on Monday, with front-month gas settling near a two-month low, while power contracts were more resilient as elevated carbon prices helped limit downside. The decline followed reports that US and Iranian officials had reached an agreement to end the conflict and reopen the Strait of Hormuz, easing concerns over energy supply disruptions. However, losses were capped as shipping markets continue to await further details on the agreement, including mine clearance operations in the strait and how quickly Gulf energy production and exports can return to normal levels. 

Adjacent markets

Oil prices fell nearly 5% on Monday to a three-month low, as confirmation of a US–Iran peace deal boosted confidence that shipping through the Strait of Hormuz could begin to normalise. The de-escalation in Middle East tensions also supported risk sentiment more broadly, lifting US equities, with both the Nasdaq 100 and S&P 500 advancing in early trading. 

Closing prices