Commodities
UK Households Face Higher Energy Bills as Wholesale Gas Prices Soar
Households in the UK are bracing for higher energy bills this winter as wholesale natural gas prices reach three-year highs.
The European benchmark natural gas price topped €75/MWh on Wednesday, its highest level since late 2022, while natural gas prices in the UK reached 185p per therm, also a three-year high.
Analysts are attributing the surge to the ongoing conflict between the US and Iran, which has kept the Strait of Hormuz closed, disrupting global oil and liquefied natural gas (LNG) supplies.
According to Hamad Hussain, senior climate and commodities economist at Capital Economics, the waterway is unlikely to reopen until early 2027, meaning energy prices will remain under pressure for an extended period.