Energy Market
Report
20th April 2026
The US naval blockade of Iranian ports took effect last Monday, triggering a sharp
move higher in spot power and a rise in Brent, though forward gas and power
contracts moved far less as the market had already priced in much of the
escalation risk.
Warm weather, strong solar and wind running above seasonal norms then capped
prompt pricing through the middle of the week, with wind averaging around 20%
above seasonal norms limiting gas-fired generation demand. Iran briefly
announced open commercial passage through Hormuz on 17 April before
reversing course on 18 April, with Iranian gunboats firing on tankers attempting
transit.
On the supply side, Norwegian flows tightened on unplanned field constraints,
supporting forward gas, while a sharp repricing of UK carbon allowances lifted
forward power, particularly on Winter 26 peak. Nuclear availability also remains
weak, with Torness-2 on planned outage and both Heysham units on unplanned
outages, reducing aggregate output. Markets remain highly volatile and exposed
to further sharp moves in either direction.