Energy markets remained volatile throughout May 2026, shaped by ongoing conflict in the Middle East, disrupted flows through the Strait of Hormuz, and stalled US–Iran negotiations. Here’s what you need to know:
Week of 4th May 2026 Fresh US–Iran clashes around the Strait of Hormuz reignited energy security fears, with gas and power prices climbing as shipping disruption persisted. Commercial operators remain largely unwilling to move cargoes, insurance costs are rising, and no clear route to normalisation has yet emerged.
Week of 11th May 2026 Markets began stabilising at elevated levels above pre-conflict norms. Qatar resumed limited LNG shipments through Hormuz, offering modest relief, but IEA warnings of prolonged supply constraints kept buyers focused on securing forward cover, particularly for Winter 2026.
Week of 18th May 2026 Regional tensions escalated after a drone strike targeted the UAE’s Barakah nuclear plant, while US–Iran talks remain deadlocked over Iran’s uranium programme and demands for Hormuz tolling rights. With LNG flows through the strait still well below pre-war levels, energy markets remain highly sensitive to further developments.
Week of 25th May 2026 Prices softened slightly with no major geopolitical developments, though markets stayed alert. Norwegian exports recovered post-maintenance, gas storage injections improved in mild weather, and US LNG feedgas volumes increased, offering tentative signs of supply recovery heading into summer.
Summary Markets remain elevated and unpredictable. Whether you’re on a fixed or flexible contract, understanding the current landscape matters. With supply disruption confirmed and recovery timelines extended, now is the time to review your energy strategy, ensuring your approach reflects both your risk appetite and your business priorities heading into winter.
For further insights and information on the dynamic landscape of the 2026 energy market, feel free to contact us:
01738474630
theteam@herestheplan.co.uk
