Friday, 31 July 2026
UK power elevated on Middle East LNG squeeze; gas eases as Iran diplomacy revives
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are noticeably higher than normal right now, mainly because a conflict in the Middle East has disrupted gas shipments to Europe, pushing up the cost of gas that UK power stations burn to make electricity. Over the next week or two prices could ease slightly if peace talks succeed, but they are likely to stay well above normal unless gas supplies recover significantly.
What's affecting prices
- •Middle East conflict disrupting LNG shipments to Europe, pushing up gas costs
- •European gas storage well below normal seasonal levels — winter supply risk remains
- •Less wind and solar than usual expected into early August due to changeable weather
- •US–Iran diplomatic signals briefly pulled gas prices down, reducing immediate upside
- •Ofgem price cap already up 13% from July — wholesale pressure baked into retail bills
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.