Wednesday 4th November 2026

Power and gas prices close lower following a volatile geopolitically driven session.

Gas and power

After a volatile session yesterday, power and gas contracts ultimately closed lower despite opening higher following US strikes. The initial sell-off came as reports suggested the US had approved a draft memorandum of understanding, while President Trump’s announcement that the US would cut funding to Israel added to hopes of de-escalation and an eventual end to the conflict. However, Iran later described the US response to its demands as unsatisfactory, insisting that all seven of its conditions must be “fully and explicitly” accepted before further progress can be made. Markets subsequently recovered some of the earlier losses, although contracts still ended the day lower. 

Adjacent markets

Oil prices fell around 1% on Tuesday to a four-week low, despite reports of a further tanker attack and US strikes on an Iranian island. Markets focused instead on signs of diplomatic progress, with reports of talks to end the war in Ukraine, and the US and Iran continuing to review proposals aimed at easing tensions. Sentiment was also supported by reports President Trump would stop $4 billion in funding to Israel after the end of the year. Meanwhile, global stock markets awaited the outcome of the US midterm elections. 

Closing prices