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Energy Markets
05.08.2026
Oil prices fell sharply on Tuesday as hopes of a diplomatic breakthrough between the US and Iran continued to build. Markets reacted after US Treasury Secretary Scott Bessent said an agreement to reopen the Strait of Hormuz could be close, easing concerns over global oil supplies. As a result, Brent crude dropped 5.3% to $79.36 per barrel, while WTI fell 5.7% to $75.77 per barrel.
UK gas prices also moved lower as geopolitical risk premiums continued to unwind. Comments from Qatar confirming it is helping to mediate talks between the US and Iran added to expectations of a peaceful resolution. The NBP spot contract fell 4% to 135.25 p/therm, while the Winter 2026 contract declined 2.5% to 137.10 p/therm.
European spot power prices dropped as stronger renewable generation eased supply pressures. The German day-ahead contract fell 26% to €110.52/MWh after forecasts showed a sharp increase in wind output, while the French equivalent also lost 26% to €98.83/MWh despite ongoing heat-related nuclear restrictions. Further along the curve, weaker gas prices weighed on power futures, with the German Cal-2027 contract slipping 0.5% to €101.37/MWh and the French equivalent easing 0.7% to €62.59/MWh.
European carbon prices edged slightly higher, supported by the ongoing heatwave, which increased demand for thermal power as nuclear output remained constrained. Trading volumes stayed relatively light, with the December 2026 EUA contract rising 0.6% to €81.34/tonne.