Thursday, 3 September 2026
UK power spikes on US-Iran Hormuz strikes; gas hits 43-month high
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are significantly higher than normal right now, mainly because military strikes near a key shipping route in the Middle East have disrupted supplies of gas shipped by sea, and markets are worried there could be even less gas available this winter. Prices are likely to stay high and could go higher over the next couple of weeks unless the situation calms down.
What's affecting prices
- •US military strikes near the Strait of Hormuz blocking gas ships to Europe
- •Iran firing back at US bases — risk of further supply disruption
- •European gas storage running well below where it should be for this time of year
- •UK nuclear power stations expected to produce less electricity through September
- •Gas prices up over 120% compared to a year ago, pushing electricity prices up with them
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.