UK Energy Bills Set to Soar Amid Global Price Surge
The UK is facing a surge in energy bills as gas prices hit a four-year high and oil costs rise above $100 a barrel. Traders were reacting to attacks on Iranian oil tankers and concerns about supply disruptions amid ongoing fighting in the Middle East.
US officials reported that multiple tankers had been struck in retaliation for attempted missile attacks on a Navy warship, sending Brent crude oil prices up by nearly 3% to around $100.50 a barrel. This marks the highest price since late July.
UK natural gas prices also rose by about 3% to around 195p per therm, which is the highest level since December 2022.
Experts warn that households could face further pain on energy bills as wholesale prices feed through into consumer costs. The Ofgem price cap will rise by 4% in October, and analysts predict a bigger hike to the price cap in January, potentially by another 13%.