Power and gas prices closed lower yesterday as UK markets played catch up following the Bank Holiday, aligning with weaker European markets that fell on Monday amid signs of significant progress in US–Iran negotiations over the weekend. Losses were capped, however, by reports of surprise US attacks in the morning, which tempered some of the optimism. Elsewhere, planned strikes at an Australian LNG facility were reportedly cancelled, while further dated power prices remained supported by strong carbon prices.
Adjacent markets
Oil prices increased on Tuesday on concerns that overnight US strikes on Iran might delay the signing of a deal to re open the Strait of Hormuz. US equities shrugged off the geopolitical concerns, as ongoing optimism about demand for semiconductors pushed markets to new record highs. Carbon prices moved higher, as hot weather combined with low wind generation increased demand for gas and coal fired generation.
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