Energy Market Briefing

UK gas Win-26 dropped 7.7% day-on-day to 6.27p/kWh at Monday's close, and UK power Win-26 fell 6.8% to 14.81p/kWh, the sharpest single-session declines in weeks. Every season out to Sum-29 fell, with the front two seasons hit hardest.

European TTF prompt eased 2.5% to 77.55 EUR/MWh on Monday, while Brent crude has steadied around $100.90/bbl, up 0.5% on the day after losing more than 9% across the previous four sessions.

Traders are pricing in reduced Gulf supply risk as shippers lean harder on workarounds, rerouted seaborne cargoes, redirected pipeline capacity and expanded ship-to-ship transfers off Oman, that are keeping energy flowing despite continued military activity in the Persian Gulf region.

Iranian President Masoud Pezeshkian is attending the UN General Assembly this week with a reduced delegation including Foreign Minister Abbas Araghchi, putting the leaders of two countries still at war in the same city.

Trump told Fox News on Sunday he would be willing to meet Pezeshkian on the sidelines of the gathering, though no meeting has been confirmed and Iran has not publicly responded.

The war is nearing seven months old with peace efforts stalled since a June memorandum of understanding collapsed and hostilities resumed last month over disagreements on the Strait of Hormuz. Gulf states are expected to mediate, with a UN Security Council resolution among the options being discussed.

Foreign ministers from the UK, Canada, France, Germany, Italy, Japan and the US condemned what they called 'unacceptable continued strikes' by Yemen's Houthis against Saudi Arabia, in a statement issued on the sidelines of the UN General Assembly.

The ministers called on the Houthis to immediately halt all attacks on civilian shipping and return to the political process, and demanded Iran stop arming and supporting the group, which they said breaches UN Security Council resolutions.

The statement comes days after a Houthi ballistic missile targeted the Saudi capital, and amid concern that a UN-brokered ceasefire between the Houthis and the Saudi-backed Yemeni government, largely holding since 2022, is coming under renewed strain.