Wholesale gas and electricity prices continued to move upwards on Monday and Tuesday in light of the continuing escalation in the Strait of Hormuz. We are hopeful that some kind of peace will emerge in the coming weeks.

When this happens, prices will ease back again. For now, we are recommending the shortest possible contracts so that clients are not locked into rates governed by external factors.

Gas: Gas prices continued to rise yesterday amid military escalations in the Middle East. Gains were largest on the front four months as this also covered Europe’s storage window, further increasing the premiums associated with refilling targets. Prices have continued to rise this morning.   Power: Power prices continued to rise yesterday, tracking the wider energy mix and geopolitics. Further out contracts traded sideways as carbon prices also fell. Prices have risen in this morning’s early trading window.   Oil: Oil prices continued to rise to a five-week high, gaining 2% on the previous close. There are concerns of further disruptions to energy supplies as attacks between the US and Iran intensify, whilst a naval blockade of Saudi Arabia was threatened by Yemen’s Houthis. Oil prices have continued to rise this morning as oil tankers U-turned in the Red Sea after threats from Iran-backed Houthi militia.   Carbon (EUAs): The ICE Dec-26 traded to €83.20/t last night. The contract opened this morning at €83.13/t.   Carbon (UKAs): The ICE Dec-26 closed at £61.31/t yesterday, opening this morning at £61.15/t.

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