Energy Market Update 26/05/2026

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:

⏳ Analysts remain divided on the timing of a formal US–Iran agreement and the resumption of flows through the Strait, with some suggesting it could take up to nine weeks. This keeps market conditions constrained over the summer amid tighter supply and elevated Asian and European LNG demand.

⚠️ Equinor warned the Iran war could push the expected LNG supply glut back by two years, as damaged Qatari output and lower Middle East supply tighten balances into 2027–2028.

🚨 Russia’s threat of systematic strikes on Kyiv’s military and decision-making sites, after heavy bombardment of the capital, has raised escalation risks and kept geopolitical risk premia supported across European energy markets.

🌱 Global renewable investment sentiment may strengthen after industry leaders argued that clean energy systems are structurally less exposed to geopolitical supply shocks, with the Iran war reinforcing concerns around reliance on traded fossil fuels and LNG transit routes.

📉 The European Commission has forecast that Eurozone growth will slow to 0.9% this year, down from predictions in Nov-25 of 1.2%, signalling weaker demand expectations.

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