EU Begins Phase-Out of Russian Gas Imports: Market Implications
March 26, 2026
Energy markets swing sharply as geopolitics drive another volatile week
April 3, 2026
UK Energy Market Summary to Friday 27th March 2026
Closing prices 27.03.2026
Amid hopes for a Middle East peace deal, British gas prices slid further on Wednesday. The NBP spot contract decreased by 1% to 4.43 p/kWh, and the Summer 2026 delivery contract fell by 2.3% to 4.5 p/kWh as markets weighed the potential impact of Iran permitting friendly LNG shipments via the Strait of Hormuz, a route responsible for around a fifth of global LNG before the conflict.
British gas prices rose on Thursday, underpinned by ongoing Middle East tensions after Iran dismissed a US 15-point peace proposal, keeping concerns alive over possible LNG disruptions via the Strait of Hormuz. The NBP spot contract rebounded by 5.4% to 4.66 p/kWh, while the Summer 2026 delivery contract advanced by 4.6% to 4.7 p/kWh.
At the time of writing, European gas storage levels are 28.14% full, with the UK 36.27% full. European gas storage levels are trending at the low of the 5-year average. Over the past week, gas has accounted for 16.7% of the UK generation mix with wind accounting for 48.9%, solar 6.8% and nuclear accounting for 13.5%. Below summarises curve prices as at the close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
On Thursday, oil prices moved higher as optimism around a possible ceasefire in the Middle East waned. Investor concerns intensified with a five-day deadline approaching and reports of US forces being sent to the region, raising the risk of escalation. Consequently, Brent crude jumped by 5.7% to $108 per barrel, while WTI crude soared by 4.6% to $94.48 per barrel.
European carbon prices ticked higher on Thursday, supported by stronger energy markets amid mixed Iran-related news and Persian Gulf tensions, while Market Stability Reserve (MSR)-related uncertainty continued to weigh on the sentiment. Consequently, the EUAs expiring in Dec-2026 rose by 1.3% to 71.65 EUR/tonne.