Plans by Centrica (LSE:CAN) and X-Energy (NASDAQ:XE) to deploy Xe-100 nuclear reactors in Britain have reached the regulatory assessment stage after the reactor design was accepted into the UK’s Generic Design Assessment.

The process is expected to last around three years and will assess the Xe-100 design before any site-specific licensing and permitting.

The Office for Nuclear Regulation, Environment Agency and Natural Resources Wales will administer the assessment.

Hartlepool Proposed for First UK Development

The regulatory milestone follows a partnership signed by Centrica and X-energy in September 2025 under which the companies intend to develop as much as 6 GW of new nuclear generating capacity across the UK.

Depending on the size and configuration of individual developments, the companies estimate the programme could comprise between 10 and 20 Xe-100 power stations.

Hartlepool is the proposed location for the first development. Work undertaken since the partnership was announced includes site assessments, planning activities and workforce initiatives.

A Nuclear and Electrical Trades Academy has also been launched as part of the companies’ activities in the area.

Regulatory Cooperation Could Support Assessment

The Xe-100 uses high-temperature gas-cooled reactor technology and is designed to supply either electricity or industrial heat.

An individual reactor is engineered for 80 MW of electrical output or 200 MW of thermal heat. Multiple units can be combined into plants with planned generating capacities ranging from 320 MW to 960 MW.

Centrica and X-energy said cooperation between UK authorities and the US Nuclear Regulatory Commission is expected to allow reviewed technical documentation and safety analyses to be shared between the regulatory systems.

Acceptance into the GDA does not itself provide approval for construction at Hartlepool, with site-specific licensing and permitting required separately.

Xe-100 Projects Also Progressing in United States

Alongside its UK programme, X-energy is advancing the first planned Xe-100 installation with Dow Inc. on the Texas Gulf Coast.

A further project is being developed with Energy Northwest in collaboration with Amazon.

Michael Shanks, the UK’s Minister of State for Energy, called the latest development “another important step towards bringing advanced nuclear technologies to the UK”.

Shanks said the projects could provide “clean, secure and homegrown energy” and bring investment and employment to Hartlepool.

Fever-Tree Drinks (LSE:FEVR) shares rose on Tuesday after Kepler Cheuvreux upgraded the drinks company to “buy” from “hold” and increased its price target.

The shares gained 4.2% to 828 pence, while the FTSE 250 was down approximately 0.4%.

Kepler raised its price target for Fever-Tree to 910 pence from 900 pence, representing potential upside of about 14.5% from the broker’s reference price.

The broker cited accelerating growth in the US and increased earnings visibility among the reasons for its revised recommendation.

Kepler Points to Faster US Growth

Kepler said Fever-Tree’s US performance has improved as Molson Coors expands distribution, merchandising and marketing activities.

According to the broker, US off-trade growth accelerated to 16% in July and August from 6% in the first quarter of 2026.

Kepler also said conditions in the UK had stabilised, while products outside Fever-Tree’s core tonic-water range now account for 32% of sales.

The broker said the company’s input-cost hedging and profit guarantee with Molson Coors provide greater visibility over EBITDA. It also expects free cash flow to support potential dividends and share buybacks.

Earnings Estimates Raised

Kepler increased its adjusted EBITDA forecast for Fever-Tree by 5.8% for 2026 and 8.5% for 2027.

The broker also raised its adjusted earnings-per-share estimates by 2.2% for 2026 and 11% for 2027.

The revised forecasts accompanied Kepler’s decision to move its recommendation to “buy”.

Fever-Tree Reports Higher First-Half Revenue

The broker’s upgrade follows Fever-Tree’s first-half results, which showed revenue rising 14% to £165.1 million.

Pre-tax profit increased 30% to £14.6 million.

Fever-Tree’s chair also purchased approximately £348,000 of the company’s shares last week, according to a regulatory filing.

HSBC estimates that the temporary shutdown of Saudi Arabia’s East-West crude pipeline could push the global oil market into a deficit of approximately 6 million barrels per day during part of September and October.

The pipeline, which transports Saudi crude from the Gulf to the Red Sea without passing through the Strait of Hormuz, is expected to remain mostly offline for three to five weeks for repairs following an attack last week.

Oil prices moved higher on Monday following reports about the expected duration of the shutdown.

Analysts led by Kim Fustier called the outage “a negative surprise” compared with HSBC’s base-case assumptions. The bank had expected Saudi Arabia’s East-West pipeline and the UAE’s ADCOP system to provide alternative export capacity while shipping through the Strait of Hormuz remained disrupted.

Saudi Export Volumes Had Already Declined

According to HSBC, Saudi oil exports fell to around 3 million barrels per day in August from between 4 million and 4.5 million bpd previously as more exports were routed through the country’s west coast.

The analysts calculated that losing 3 million bpd for one month would remove approximately 90 million barrels from supply.

HSBC said cumulative global oil inventory draws since February have exceeded 500 million barrels.

Based on these factors, the bank estimates that the global market could temporarily face a deficit of around 6 million bpd between mid-September and mid-October, which it described as “the largest implied deficit since the start of the conflict.”

HSBC Monitors Potential Early Pipeline Restart

Saudi west-coast export logistics had already been affected before the pipeline shutdown, according to HSBC.

Loadings at Yanbu had declined, while some Saudi exports were redirected north through Egypt’s Suez Canal and SUMED pipeline following the announcement of a Houthi blockade on July 20.

HSBC cited Saudi Aramco’s previous restoration work at the Ras Tanura refinery following an attack in March when assessing the potential repair schedule.

“A key uncertainty is whether repairs could be completed sooner than 3-5 weeks,” the analysts said.

An earlier restart could reduce the volume of supply affected by the shutdown.

Middle East Disruptions Affect Refined-Product Flows

HSBC also assessed the factors behind higher refined-product prices.

The bank’s analysis differs from the US administration’s view that Ukrainian attacks on Russian refineries have been the main factor behind record US diesel prices.

HSBC said it continues to see “the Middle East shock as the dominant driver of the current refining tightness.”

The bank estimated that refined-product loadings from the Gulf have declined by 3.4 million bpd, including approximately 2.1 million bpd of diesel, jet fuel and gasoline.

Brent Could Reach $120 in HSBC Scenario

HSBC said the East-West pipeline outage increases the upside risk to its base-case oil price forecasts.

The bank also said the disruption raises the probability of its more bearish “Stalemate” scenario, under which Brent crude could potentially reach $120 per barrel.

HSBC identified three indicators for assessing the impact of the outage: signs of a partial pipeline restart, loading activity at Yanbu and the pace of global inventory declines.

Gold prices declined on Tuesday as investors assessed higher US Treasury yields, a firmer dollar and expectations for the Federal Reserve’s upcoming interest-rate decision.

Spot gold was down 0.2% at $4,290.39 an ounce at 02:16 ET, following a decline of more than 1% in the previous session. Gold futures fell 0.5% to $4,330.57.

Elsewhere in precious metals, spot silver declined 0.2% to $63.12 an ounce, while platinum rose 0.2% to $1,769.49. The US Dollar Index increased 0.2% to 99.63.

Fed Rate Expectations Remain in Focus

Financial markets were assigning an approximately 92% probability to a Federal Reserve interest-rate increase this week.

The shift in rate expectations has coincided with higher Treasury yields. The benchmark 10-year US Treasury yield briefly reached 5% on Monday, its highest level in almost three years.

Higher interest rates increase the yields available on interest-bearing assets, which can affect demand for non-yielding investments such as gold.

Spot gold reached a five-week low on Monday and has fallen more than 3% since the beginning of September. The metal had traded above $4,600 an ounce in late August.

Energy Prices Add to Inflation Considerations

Investors were also assessing the implications of higher oil prices following the shutdown of Saudi Arabia’s East-West pipeline after attacks last week.

The pipeline had been used to transport Saudi crude while shipping through the Strait of Hormuz remained restricted.

Saudi authorities have not provided a timeframe for restarting the pipeline or indicated how quickly alternative shipments could compensate for the affected volumes.

The increase in energy prices has added to market attention on the inflation outlook ahead of the Federal Reserve’s policy decision.

OCBC Forecasts Gold at $4,600 by December

OCBC raised its forecasts for precious metals, citing higher prevailing prices, increased investor participation and structural demand.

Chez Anbu, OCBC’s head of wealth advisory, said the rise in gold prices during August reversed the softer performance recorded earlier as macroeconomic conditions changed.

The bank now forecasts gold at $4,600 an ounce by December 2026. Its forecast for silver stands at $69.70 an ounce.

Gold was also trading above the approximately $4,000 level reached during an earlier market correction.

Oil prices advanced on Tuesday as markets continued to assess potential supply disruptions following further Houthi attacks on Saudi Arabia and the postponement of talks concerning shipping through the Strait of Hormuz.

Brent crude futures rose 2.0% to $107.83 per barrel by 04:19 ET. US West Texas Intermediate futures gained 2.1% to $103.50 per barrel.

Oman said a meeting scheduled for Monday between Iran and Gulf states concerning the reopening of the Strait of Hormuz had been postponed. No replacement date was announced.

Saudi East-West Pipeline Remains Offline

Iran-aligned Houthi forces in Yemen carried out additional attacks against targets in Saudi Arabia on Monday while maintaining operations around the Red Sea and Bab al-Mandab Strait.

The attacks followed strikes the previous week that took Saudi Arabia’s East-West oil pipeline offline.

Analysts cited in the source estimated that further disruptions in the region could affect supplies equivalent to an additional 4%-5% of the global total.

“Oil prices remain firmly supported, with that floor unlikely to give way until markets get clearer visibility on Saudi supply after the East–West pipeline shutdown,” ING analysts said in a note.

Hormuz Oil Traffic Remains Below Pre-Conflict Levels

Approximately one-fifth of global oil supplies passed through the Strait of Hormuz before the conflict between the US and Iran began in late February.

Oil flows through the waterway have since remained at a fraction of their earlier levels following restrictions on maritime traffic.

The delay to the planned meeting in Oman left the timing of negotiations over the reopening of the strait uncertain.

Washington and Tehran Disagree Over Peace Talks

US President Donald Trump said on Monday that Iran was seeking a peace agreement, repeating comments he has made during the conflict.

Tehran rejected the assertion, saying negotiations would not take place until its conditions were satisfied.

Iran also said the US would need to adhere to the terms of a June ceasefire agreement that has since expired.

The statements from Washington and Tehran left the timing of further diplomatic negotiations and any restoration of shipping through the Strait of Hormuz uncertain.

European and British wholesale natural gas prices edged lower on Tuesday after reaching their highest levels since 2023 in the previous session.

The benchmark Dutch front-month TTF contract fell 0.7% to approximately €82.80 per megawatt-hour, compared with Monday’s peak of €83.40.

In Britain, the equivalent NBP wholesale gas contract declined 0.7% to 200.10 pence per therm after reaching multi-year highs.

European Gas Storage at Around 68%

European underground natural gas storage facilities were approximately 68% full, according to data from Gas Infrastructure Europe, below the five-year seasonal average.

The storage position has increased attention on potential disruptions to LNG supplies, particularly those associated with shipping through the Strait of Hormuz.

JERA Chief Executive Yukio Kani said on Monday that lower European storage levels increase the region’s exposure to prolonged shipping disruptions around the strait and competition for spot LNG cargoes.

Brent Crude Rises Above $113

Brent crude increased 1.2% on Tuesday to more than $113 per barrel.

Saudi Arabia blamed Iran-backed groups for an attack on its East-West pipeline and said the resulting disruption could affect supplies equivalent to as much as 4% of global crude consumption.

Further Houthi attacks on Red Sea shipping routes have also affected maritime traffic in the region.

A diplomatic meeting in Oman concerning the passage of tankers through the Strait of Hormuz was postponed, while Qatari LNG export flows through the Persian Gulf remained restricted.

Markets Await Federal Reserve Decision

Energy markets were also monitoring monetary policy developments following the European Central Bank’s decision last Thursday to increase its key interest rate by 25 basis points to 2.50%.

The US Federal Reserve was due to begin its two-day policy meeting on Tuesday. Financial markets were pricing in approximately a 90% probability of a 25-basis-point rate increase.

Higher energy costs remain one of the factors being monitored for their potential impact on inflation and the outlook for monetary policy.