Household energy bills to jump 13% in July as Iran war drives up gas prices

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London: Household energy bills in the United Kingdom will rise by 13% from July, after surging wholesale gas prices triggered by the US-Israel conflict with Iran pushed up costs in global energy markets, energy regulator Ofgem announced on Wednesday.

The new energy price cap will raise a typical household's annual bill from £1,641 to £1,862, adding about £221 a year, or nearly £18 per month, to energy prices. The rise will affect millions of families in England, Scotland, and Wales with standard variable tariffs.

Ofgem stated that the spike was brought on by higher wholesale fuel prices as a result of disruptions in energy markets caused by the Middle East war. Tensions in the Strait of Hormuz, a crucial route for global oil and LNG supplies, have contributed to significant spikes in gasoline prices. Wholesale petrol costs in Britain have risen substantially since the conflict began.

The agency warned that if global tensions persist, prices may remain high in the coming months. Analysts also predict another increase in the energy price cap later this year, increasing concerns about additional strain on household finances and the overall cost-of-living scenario.