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Energy Markets
15.07.2026
Oil prices continued to rise on Tuesday as renewed geopolitical tensions in the Middle East increased concerns over global energy supplies. Markets reacted to the US announcement of a proposed blockade around the Strait of Hormuz, including plans for a 20% transit fee on vessels using the key shipping route. As a result, Brent crude gained 1.7% to $84.73 per barrel, while WTI rose 1.5% to $79.34 per barrel.
UK gas prices climbed to their highest level in three months as concerns over LNG supplies returned. Renewed military action involving Iran, combined with uncertainty around shipping through the Strait of Hormuz, added to existing market pressures. Low European gas storage levels and ongoing heatwaves also supported prices, pushing the NBP spot contract up 4% to 129 p/therm and the Winter 2026 contract up nearly 4% to 130.08 p/therm.
European power markets continued to strengthen as hotter weather and tighter generation availability increased electricity prices. German day-ahead prices rose on forecasts of lower wind generation, while French prices climbed after heat-related restrictions reduced nuclear output across several reactors. Longer-term power contracts also moved higher, supported by stronger gas markets and firmer carbon prices.
European carbon prices extended their recent gains as traders positioned ahead of the upcoming EU ETS reform announcement. Additional support came from the EU's decision to temporarily reduce carbon allowance auction volumes, helping lift December 2026 carbon allowances by 1.6% to €81.39 per tonne. With geopolitical tensions, weather conditions and policy developments all influencing markets, volatility is expected to remain elevated.