Friday, 4 September 2026
UK power eases from post-Iran-strike spike but remains elevated on thin EU storage
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices shot up sharply at the start of this week after US military strikes on Iran scared markets about gas supplies being cut off, and while prices have come down a little since, they remain higher than normal — partly because European countries don't have as much gas stored for winter as they usually would at this time of year. Expect prices to stay above normal for the next couple of weeks, with the risk of another jump if the situation in the Middle East gets worse or if we get an early cold snap.
What's affecting prices
- •US military strikes on Iran caused fears about gas shipments being disrupted, sending prices sharply higher on 1 September
- •Europe has far less gas stored for winter than usual — the lowest level recorded at this time of year since 2011
- •Middle East tensions are keeping global gas tanker supplies tight, with Qatari deliveries to Europe not expected to resume fully until October at the earliest
- •UK nuclear power stations are expected to produce significantly less electricity through September, leaving less spare supply on the grid
- •Met Office forecasts unsettled, windier weather in the north-west over the next week — some wind generation support, but also risk of demand-side cold spells later in the month
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.