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GLEG UK Energy Market Update 11-05-26…
May 11, 2026
Global energy markets have seen a sharp shift over the past few days, largely driven by easing geopolitical tensions and progress in US–Iran discussions. Oil, gas, power and carbon markets all reacted quickly as sentiment swung between optimism and caution.
Crude oil prices dropped significantly on Wednesday as markets responded to reports that the US was winding down military activity in Iran and both sides were moving closer to an initial peace agreement. Brent crude fell nearly 8% to around $101 per barrel, while WTI dropped around 7%, marking a two-week low at the time.
By Thursday, prices remained under pressure but steadied slightly as attention turned to the potential reopening of key shipping routes through the Strait of Hormuz. Brent eased further to just above $100 per barrel, reflecting cautious optimism alongside continued uncertainty in the region.
Gas, Power and Carbon Markets Follow Mixed Signals
In UK gas markets, short-term support came from ongoing maintenance at Norway’s Troll field, helping the NBP spot contract edge higher. However, improved geopolitical sentiment weighed on forward pricing, with the Winter 2026 contract easing slightly.
European power markets moved more sharply. German day-ahead prices fell on expectations of stronger solar generation, while French prices dropped on milder weather and weaker demand. Further along the curve, both German and French contracts softened in line with weaker gas fundamentals.
Carbon markets remained volatile throughout the period, initially rising on peace deal headlines before giving back gains. Overall, EUAs finished slightly lower as traders continued to monitor developments in US–Iran negotiations for clearer direction.
What This Means for Businesses
This highlights just how quickly energy markets can react to geopolitical news. From oil swings to shifting power prices, uncertainty remains a key driver across all commodities.
For businesses, staying ahead of these movements is essential for managing costs and planning ahead.
If you’d like support understanding how these market changes could impact your energy strategy, or to discuss your business requirements, contact the GLEG team at hello@gleg.co.uk.