UK Gas Prices Hit Four-Year High Amid Ongoing Middle East Conflict

UK households are bracing for another hit on their energy bills as gas prices have reached a near four-year high. The surge in wholesale gas prices is largely driven by the ongoing conflict in the Middle East, which has seen multiple attacks on oil tankers and concerns about supply disruptions.

The price of Brent crude oil jumped nearly 3% to around $100.50 a barrel on Wednesday afternoon, its highest level since late July.

UK natural gas prices have also increased by around 3% to reach approximately 195p per therm, the highest level since December 2022.

The conflict in the Middle East is weighing heavily on hopes of a peace deal being reached this year, causing oil costs and supply disruptions to rise. Fuel prices are also increasing, with petrol prices reaching their highest level in four years at an average of 167.17p per litre, while diesel has risen by the same amount.

Experts warn that the latest surge in wholesale prices could feed through into consumer energy bills in the winter, with some predicting a further increase to the Ofgem price cap as early as January. The current price cap is set to rise by 4% in October, and analysts are forecasting an additional 13% hike in January.