Friday, 3 July 2026
UK power softens on Iran diplomacy; heatwave demand & thin storage cap downside
Prices may ease slightly2027 wholesale: £81.48/MWh
Energy prices are higher than they were a year ago, mainly because of the conflict involving Iran, which has disrupted the world's gas supply routes and pushed up the price of gas that power stations need to run. Over the next week or two, prices may ease slightly if peace talks continue to progress, but are unlikely to fall back to normal anytime soon because Europe's gas stores are very low and another spell of hot weather is expected.
What's affecting prices
- •Iran conflict disrupting global gas supply routes — keeps gas prices high
- •Europe's gas storage levels unusually low for this time of year
- •Hot weather across Europe pushing up demand for gas-fired electricity
- •Diplomatic progress on US-Iran talks giving slight price relief
- •Declining North Sea gas production making the UK more reliant on imports
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.