Energy Markets Swing Sharply as Geopolitics Drive Another Volatile Week
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UK Energy Market Summary to Friday 3rd April 2026
Closing prices 03.04.2026
UK gas prices moved lower on Wednesday, with the NBP spot contract falling 4.6% to 4.1 p/kWh amid improving sentiment around Middle East tensions following comments from Donald Trump. Strong pipeline inflows from Norway and Algeria further eased supply concerns.
British gas prices climbed on Thursday as Trump’s speech cast doubt on a swift end to the Iran conflict. Analysts note the Strait of Hormuz could remain closed through May, even in a de-escalation scenario, with partial disruption lasting into June and July. The NBP spot contract rebounded by over 4% to 4.27 p/kWh, while the Winter 2026 delivery contract advanced by nearly 5% to 4.33 p/kWh.
At time of writing, European gas storage levels are 28.42% full, with the UK 36.28% full. European gas storage levels are trending at the low of the 5-year average. Over the past week, gas has accounted for 20% of the UK generation mix with wind accounting for 37.8%, solar 8.5% and nuclear accounting for 16.9%. Below summarises curve prices as at the close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
Crude oil prices rallied on Thursday as concerns over prolonged supply disruptions grew after President Donald Trump signalled continued US attacks on Iran. While he indicated an escalation in military operations, no timeline for ending the conflict or reopening the Strait of Hormuz was provided. Hence, Brent crude surged by nearly 8% to $109.03 per barrel, while WTI crude hiked by 11.4% to $111.54 per barrel.
On Thursday, European carbon markets weakened due to pre-Easter positioning, with a standard holiday-driven sell-off compounded by geopolitical uncertainty and technical selling. Consequently, the EUAs expiring in Dec-2026 dropped by 4% to 71.69 EUR/tonne.