Tuesday 4th August

 Power and gas markets close mixed as doubts emerged about whether peace talks are actually taking place. 

Gas and power

 Power and gas prices closed mixed on Monday, with most contracts ending the session lower, while front month gas settled modestly higher. The session was dominated by conflicting signals from Tehran and Washington, with US officials claiming that peace talks were ongoing, while Iran continued to insist that no negotiations were taking place. On the fundamentals side, weak wind generation continued to support near-term power markets, with the UK day ahead power price settling above £100/MWh for a ninth consecutive day. 

Adjacent markets

 Oil prices fell during yesterday’s session after President Trump called off major strikes on Iran over the weekend and suggested that Iran and other Middle Eastern nations had requested more time to finalise a deal that would see the immediate reopening of the Strait of Hormuz, adding that negotiations would begin later in the day. Prices dropped by around 5%, despite Iran denying that any talks were taking place and stating that no meetings with the US had been arranged. Meanwhile, equity markets were mixed, with European indices moving higher amid the decline in oil prices, while UK markets closed lower as shares in pharmaceutical giant AstraZeneca fell on reports of a potential merger. 

Closing prices