Energy Market Update 16/06/2026

Welcome to our weekly energy market update, where we share the latest trends, shifts, and key developments impacting the energy sector. Whether it’s fluctuations in oil and gas prices, changes in renewable energy policies, or updates on energy infrastructure projects, we’re here to help you stay informed. Join us as we break down the most important factors influencing the market this week and explore what these changes could mean for your business.

Current Market Drivers:

🌍 The US and Iran have reportedly reached a draft memorandum of understanding aimed at halting hostilities and reopening the Strait of Hormuz, with a formal signing expected on Friday. Reports also suggest the US may ease restrictions on Iranian ports. While this could improve future supply security and ease pressure on energy markets, uncertainty remains around implementation and ongoing nuclear negotiations.

📉 LSEG’s latest outlook shows NWE storage tracking a weak 2021-style refill path into mid-July, raising the risk of only around 75% fullness by winter, increasing Winter-26 supply risks and supporting heightened EU storage replenishment needs into Summer-27.

⚡ NESO has capped UK interconnector trading with mainland Europe at 1,500MW due to grid balancing issues, increasing winter price spike risk if tight margins raise reliance on costly gas-fired generation.

🏭 Europe’s reluctance to sign long-term LNG contracts reflects weaker confidence in future gas demand, as regulation, competitiveness pressures and electrification uncertainty weigh on structural consumption expectations.

📈 The US proposed 10–12.5% tariffs on imports from 60 economies, including the EU and UK, raising trade tensions and inflation risks, weighing on already weaker demand sentiment, although energy and key commodities were exempt.

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