News

Update on wholesale electricity and gas prices since the Iran war began (late Feb / early Mar 2026):

Wholesale energy prices have spiked sharply and become more volatile, mainly because markets fear disruption to Middle East oil and LNG supply routes.

Gas (largest move) European wholesale gas prices surged quickly, in some cases nearly doubling within days of the conflict starting.

• Early estimates suggested UK gas prices rose around 70–80% over the first weekend of the strikes.
• UK and European wholesale gas benchmarks are now at multi-year highs, driven by concerns over LNG flows from the Gulf and possible disruption through the Strait of Hormuz, which carries a significant share of global LNG trade.

Electricity (indirect impact) Wholesale power prices have risen alongside gas, since gas-fired generation still sets the marginal price in many European power markets.

• In the UK, wholesale energy prices overall have risen roughly 50% in recent days due to the spike in gas costs.
• Oil and broader energy markets (driving sentiment)
• Brent crude has surged above $100/bbl, the highest since the 2022 energy shock, as traders price in supply risks.
• Attacks on infrastructure and halted LNG production in Qatar have added to fears of tighter global supply.

What it means for prices going forward
Analysts say the price spike is currently mostly a “risk premium” rather than an actual supply shortage.

If the conflict disrupts shipping or LNG exports for longer, wholesale gas and electricity prices could stay elevated or spike further; if it stabilises quickly, markets may partially retrace.

✅ In short: Since the war started, wholesale gas prices have jumped dramatically (in some cases close to doubling), electricity prices have risen in tandem, and oil has moved above $100/bbl, largely driven by fears of supply disruption from the Gulf.