Market Update:

‍

• On Friday, following the announcement of the re-opening of the Straits of Hormuz on the back of the 10-day truce between Israel & Lebanon, prices began to fall.
• This raised optimism about peace talks, although Tehran warned that it could close the crucial waterway again if the recent U.S. Navy blockade of Iranian ports continued.
• Oil prices crashed to $87.2/bbl, having been trading around $98/bbl earlier in the day.
• By Saturday, Iran had once again said it was tightening control over the Strait of Hormuz on Saturday, warning mariners the vital energy route was again closed, but President Trump said Tehran could not blackmail the United States by shutting the waterway.
• Tehran said it was responding to a continued U.S. blockade of Iranian ports, calling it a violation of their ceasefire, while Supreme Leader Mojtaba Khamenei said Iran's navy was ready to inflict "new bitter defeats" on its enemies.
• Events escalated by Sunday, as President Trump said that Iran has committed a "serious violation" of the ceasefire but still thinks he can get a peace deal.
• He continued: “representatives are going to Islamabad, Pakistan, "tomorrow night" for Iran negotiations.”
• "We’re offering a very fair and reasonable deal, and I hope they take it because, if they don’t, the United States is going to knock out every single power plant, and every single bridge, in Iran.”
• The U.S. has seized an Iranian cargo ship that tried to run its blockade and Iran has vowed to retaliate.

‍

‍

NATURAL GAS:
‍

European gas markets have climbed strongly at open, retracing most of the losses posted on Friday. The NBP front month contract is pricing at 103.10 p/th at time of writing, up from Friday’s low at 95.62 p/th. The sell off in the market on Friday was triggered by the reopening of the Strait of Hormuz and reports of a ceasefire being agreed between Israel and Lebanon. However, the weekend saw Iran once again closing the strait in response to the US naval blockade and since then we have seen both sides target commercial vessels, with the US navy seizing an Iranian cargo ship on Sunday. Iran have stated that the seizing of this vessel was in violation of the ceasefire. Peace talks are set to take place today in Pakistan, however, reports suggest that Iran do not plan to participate. Events in the Middle East continue to influence European commodities markets with more doubts cast over the ceasefire agreement and long-lasting peace after this weekend.

‍

‍

‍

ELECTRICITY:
‍

European gas markets have climbed strongly at open, retracing most of the losses posted on Friday. The NBP front month contract is pricing at 103.10 p/th at time of writing, up from Friday’s low at 95.62 p/th. The sell off in the market on Friday was triggered by the reopening of the Strait of Hormuz and reports of a ceasefire being agreed between Israel and Lebanon. However, the weekend saw Iran once again closing the strait in response to the US naval blockade and since then we have seen both sides target commercial vessels, with the US navy seizing an Iranian cargo ship on Sunday. Iran have stated that the seizing of this vessel was in violation of the ceasefire. Peace talks are set to take place today in Pakistan, however, reports suggest that Iran do not plan to participate. Events in the Middle East continue to influence European commodities markets with more doubts cast over the ceasefire agreement and long-lasting peace after this weekend.

‍

‍

Latest Price:
‍

‍

Latest Gas & Power Annual Chart:
‍

‍

‍

‍