Prestige Business Solutions wholesale market update.

European energy markets fell sharply on Wednesday as reports that Iran and Oman are close to finalising an agreement to open a new commercial shipping route through the Strait of Hormuz pulled risk premium out of gas, power and the wider complex.

Energy markets extended their retreat on Tuesday as reports that the United States and Iran are close to an agreement on reopening the Strait of Hormuz pulled risk premium out of gas, power and crude alike.

Energy markets spent Monday pricing out the risk of a wider Middle East conflict, only to reverse course this morning after Iran denied that talks with Washington were under way and an LNG carrier was struck transiting the Strait of Hormuz.

Diplomacy rather than weather set the tone into the new week, with US-Iran talks scheduled for this afternoon, reports of an emerging arrangement over the Strait of Hormuz, and Brent down 4.5 per cent this morning as a result.

European energy markets pulled back on Thursday as cooler weather and a modest improvement in supply allowed traders to unwind part of the risk premium built up during a month of escalating conflict between the United States and Iran,

A renewed exchange of strikes between the United States and Iran, together with a drone attack on LNG vessels at an Egyptian port, pushed the geopolitical risk premium straight back into European gas and oil prices on Wednesday after it had been stripped out at the start of the week.

Wholesale energy markets extended their retreat from recent highs on 28 July as the pause in US-Iran hostilities continued to drain the risk premium built up over the past fortnight, though the pace of the decline slowed sharply and this morning has begun to reverse on reports of renewed military activity in the region.

European energy markets fell sharply on Monday as a pause in US strikes on Iran, and the absence of further disruption to shipping through the Strait of Hormuz, prompted traders to unwind a substantial portion of the geopolitical risk premium accumulated over the preceding fortnight.

A reported pause in hostilities between the United States and Iran has triggered a sharp correction across European energy markets this morning, unwinding much of the risk premium accumulated during an eight-session rally.

Escalating conflict risk in the Middle East sent Brent back above $100/bbl on Thursday, even as European gas and power prices drifted lower on cooler weather and comfortable summer supply.

Escalating hostilities around the Strait of Hormuz, with reported attacks on tankers and threats to regional energy infrastructure, drove European energy markets sharply higher on Wednesday.

The deepening conflict between the US and Iran kept energy markets on the front foot, driving European gas to fresh four-month highs with power, oil and coal following.

A ninth consecutive night of strikes between the United States and Iran kept wholesale energy markets on the front foot into Monday's close, with disruption to shipping through the Strait of Hormuz feeding supply-security concerns across gas, power and oil.

A ninth consecutive day of strikes between the US and Iran, including reported attacks on oil tankers in the Strait of Hormuz, has pushed energy markets sharply higher, extending Friday's broad rally.

A sixth consecutive night of US-Iran strikes has kept a heavy risk premium in near-dated gas and oil, with concerns over LNG transit through the Strait of Hormuz outweighing an otherwise comfortable European summer supply picture.

Energy markets extended their rally on Wednesday as a Middle East risk premium, tighter LNG supply and weaker wind lifted gas, power and crude alike.

Energy markets pushed higher again on Tuesday as an intensifying geopolitical risk premium around the Strait of Hormuz combined with hot weather and below-average storage to lift gas, power and carbon.

Escalating tensions in the Middle East dominated wholesale energy markets on Monday, with reports of attacks on shipping near the Strait of Hormuz and the prospect of a transit fee on Gulf cargoes driving prompt gas, power and oil sharply higher.

Energy markets open the week on a firmer footing after a weekend of renewed Middle East escalation rebuilt risk premium across the complex, reversing a softer close on Friday.