UK Households Face Rising Winter Energy Bills as Gas Prices Hit Near Four-Year High

Experts have warned that UK households could face increased pressure on energy bills as oil prices surge above $100 a barrel and UK gas prices reach a near four-year high. Financial markets reacted to attacks on Iranian oil tankers and growing concerns over supply disruptions amid escalating fighting in the Middle East. US officials confirmed that multiple tankers were struck in retaliation for attempted missile attacks on a Navy warship.

Following the events, Brent crude oil rose nearly 3% to around $100.50 a barrel on Wednesday afternoon, crossing the $100 mark for the first time since late July. UK natural gas prices also increased by about 3% to around 195p per therm, reaching their highest level since December 2022. Fuel prices at the pump have similarly climbed, with RAC data showing average petrol prices up 5p a litre to 167.17p and diesel increasing by the same amount to 188.63p.

The surge in wholesale prices is expected to feed directly into consumer energy bills this winter. Ofgem's price cap is set to rise by 4% in October, with analysts from Oxford Economics predicting a further 13% increase in January. Experts expressed deep concern for households struggling with energy debts and warned that sustained high energy costs risk triggering broader inflationary pressures across the economy.