Institution: Middle East conflict may push UK household energy expenses up by 13%

According to Golden Ten Data on May 20, the UK energy consultancy Cornwall Insight released a forecast report on May 19 regarding the household energy price cap for July to September 2026, stating that energy price increases caused by the Middle East conflict could lead to a 13% rise in the UK's annual household energy spending cap. According to the final forecast in the report, a UK household using both gas and electricity could see its annual energy bill capped at up to £1,850 (roughly $1.339 per pound), whereas the previous forecast was £1,641. The report points out that the main reason for the energy price rise is the sharp increase in global energy prices following the outbreak of conflict in the Middle East. Although the temporary ceasefire has somewhat suppressed market volatility, prices remain high. The report expects that, even if the conflict were to end immediately, the resulting infrastructure damage and supply chain disruptions will have a lasting impact, making it difficult for the UK's autumn household energy price cap to return to the April level this year.