
Iran Conflict Boosts Solar Demand
April 28, 2026
Solar Power Driving the Next Phase of Energy Growth
May 7, 2026UK Energy Market Summary to Friday 1st May 2026

Closing prices 01.05.2026

British gas prices advanced to a two-week high on Wednesday, as geopolitical uncertainty surrounding the Iran conflict and low EU gas storage levels supported the market. Additional upward pressure stemmed from scheduled maintenance in UK and Norwegian gas fields, reduced LNG inflows, and the emerging risk of an El Niño event. The NBP spot contract jumped by 9.4% to 3.92 p/kWh, while the Winter 2026 delivery contract climbed by 7% to 4 p/kWh.
The NBP spot contract slipped by 0.4% to 3.8 p/kWh on Friday, even as analysts flagged growing risks to Europe’s gas storage, currently at 32% and near five-year lows. A prolonged closure of the Strait of Hormuz could further tighten the balance, while poor injection incentives leave the Winter 2026 delivery contract vulnerable. Despite this, it held steady at 3.93 p/kWh, with geopolitical uncertainty limiting price movements.
At time of writing, European gas storage levels are 33% full, with the UK 30% full. European gas storage levels are trending at the low of the 5-year average. Over the past week, gas has accounted for 15.1% of the UK generation mix with, wind accounting for 27.1%, solar 14.2% and nuclear accounting for 17.8%. Below summarises curve prices as at close of business on Friday.
Curve UK Gas & Electricity Markets

Other Energy Markets
Crude oil prices surged to a one-month high on Wednesday after reports indicated that the U.S. is considering renewed military action against Iran. A forthcoming briefing will present several options, including attacks, securing key shipping routes, or targeting uranium stockpiles. As diplomatic efforts falter, any escalation could end the ceasefire and heighten regional instability. Hence, Brent crude climbed by 6% to $118.03 per barrel, while WTI crude hiked by 7% to $106.88 per barrel.
European carbon prices declined on Wednesday weighed by geopolitical uncertainty and soft macroeconomic indicators. According to ICE data, investment funds cut their net long EUA positions by 3.5 million tonnes to 37.9 million tonnes, reflecting reduced risk appetite rather than a decisive bearish repositioning. The EUAs expiring in Dec-2026 fell by 2.5% to 73.20 EUR/tonne.

