UK Faces £10 Billion Energy Price Shock from Iran Conflict

UK households and businesses are facing significant financial burdens due to the ongoing Iran conflict. According to analysis from the Energy and Climate Intelligence Unit (ECIU), the additional energy and fuel costs since the start of the US-Iran war on February 28th have totaled almost £10 billion.

The research suggests that British industry's extra bill is reaching £31 million per week, with higher wholesale oil and gas prices contributing to the increased costs. The figures include over £5 billion in higher gas and electricity costs expected to be passed onto consumers next year, as well as around £4.7 billion in additional road fuel costs already being paid by motorists.

The ECIU analysis also found that for every week the conflict continues, UK gas and electricity users are likely to face a further £190 million in excess costs on energy bills. This comes on top of around £183 million per week in additional road fuel costs already being seen at the pump.

Experts warn that even if the conflict ends, gas prices may remain high due to infrastructure damage to the Ras Laffan gas site, which could have mid-term impacts on liquefied natural gas (LNG) markets.