Daily market report Wednesday 25 March

Prices fall as positive headlines ease market sentiment

Gas and Power 

Gas and power prices retreated, erasing gains from the previous two sessions, as markets absorbed shifting geopolitical developments. Prices traded lower for much of the day after US President Donald Trump indicated that planned strikes on Iranian energy infrastructure would be postponed, following what he described as “very good and productive conversations”. Losses were pared, after an Iranian news agency denied that substantive talks had taken place and reiterated threats of retaliation if strikes occurred. Contracts ended the day lower, as markets remained cautious but were given a temporary boost by the headline, irrespective of whether meaningful talks had occurred. 

 Adjacent Markets 

Global equities moved higher yesterday amid optimism that tensions with Iran could ease, following posts from President Trump on his Truth Social platform claiming he had held “very good and productive” talks with Iranian officials and would postpone any strikes on Iran’s energy infrastructure for five days. Oil markets reacted sharply to the reports, with prices plunging around 8% during the session, though scepticism grew later in the day after Iran publicly denied that any such discussions had taken place.