UK energy bills could soar by £500 over Iran-US war, think tank warns

The economic impacts of the Iran war are likely to be felt across the world, including by UK households NewsUKHome NewsUK energy bills could soar by £500 over Iran-US war, think tank warnsThe economic impacts of the Iran war are likely to be felt across the world, including by UK householdsAlex Ross Wednesday 04 March 2026 08:40 GMTBookmarkCommentsGo to commentsBookmark popoverRemoved from bookmarksClose popoverMartin Lewis explains impact of Iran conflict on energy pricesYour support helps us to tell the storyRead moreSupport NowFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.Your support makes all the difference.Read moreUK households are being warned that their annual energy bills could increase by £500 because of the war in the Middle East.After the US and Israel launched attacks on Iran, the conflict in the region has dramatically unfolded, raising fears over relied-on supplies of oil and liquified natural gas from the Gulf.Latest figures show the price of UK wholesale gas has almost doubled since the start of the war.Following Tuesday’s spring statement delivered by chancellor Rachel Reeves, think tank The Resolution Foundation issued a warning that the rise in price of oil and gas could impact UK household bills.In a statement, it said: “If recent rises in the price of oil and gas were to be sustained they could add around a percentage point to inflation and £500 on to typical annual energy bills.“The latter increase would be particularly damaging for poorer families as they spend more than twice as much of their budgets on energy as richer households.” The warning comes just days after the regulator Ofgem announced its price cap on energy bills would fall in April for a typical dual fuel household. However, with pressure from wholesale prices, the cap could be increased in three months’ time.This is a breaking story - more to follow...More aboutUKHouseholdsEnergy BillsResolution FoundationJoin our commenting forumJoin thought-provoking conversations, follow other Independent readers and see their repliesCommentsMost popularPopular videosBulletinRead next