Latest Market Update - April 2026
Although prices remain elevated compared with pre‑conflict levels, they have begun to ease following the ceasefire agreement between the United States and Iran.
After the announcement of a ceasefire between Israel and Lebanon, President Trump said the US and Iran are “very close” to reaching a separate deal to end the war. If this proves accurate, it could put additional downward pressure on prices. However, reports of potential Iranian retaliation for the US blockade, along with growing scepticism about whether a deal will materialise, continue to limit confidence.
Iran’s proposal to allow safe passage through the Omani side of the Strait of Hormuz suggests a possible reduction in supply disruptions. Even so, uncertainty around the negotiations and their conditions is keeping shipping activity subdued in the region, which is helping to support current price levels.
In Europe, buyers are exploring longer‑term diversification options, including the possibility of sourcing LNG from Canada via the Panama Canal. While this does not offer immediate relief to supply conditions, it may become a more attractive route further along the curve.
Other market drivers include:
Further increases in wind generation this week, with forecasts around 20% above average.
The UK Government’s plan to scrap the Carbon Price Support from April 2028, which could reduce the cost of running CCGT plants, potentially boosting demand and lowering overall wholesale costs.
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