09 Mar Energy Markets Hit by 50% Monthly Jump, Amid Iran and Middle East Instability
Wholesale energy prices surged sharply this morning as geopolitical tensions escalate in the Middle East.
Gas prices jumped significantly, day-ahead contracts rose 16% to 156.50p/th, April 2026 gas climbed 17% to 158.70p/th, and summer 2026 gas surged 21% to 149.25p/th.
Compared with roughly a month ago, wholesale gas and Electricity prices are up around 50%, highlighting how quickly market risk is driving costs higher.
Power prices followed suit: day-ahead electricity rose 3.7% to £124.50/MWh, April 2026 power increased 11.6%, and summer 2026 power climbed 13.5%.
Brent crude oil jumped 13% to $105.27/bl, fueled by disruptions to tanker movements and security concerns around the Strait of Hormuz, through which about one-fifth of the world’s oil supply flows. Escalating unrest and refinery disruptions in the Middle East are adding further upward pressure.
The appointment of Mojtaba Khamenei as Iran’s new leader has raised concerns that hardline policies may persist, potentially prolonging regional instability.
Meanwhile, carbon markets bucked the trend, with EU ETS carbon down 1.7% to €69.90/t and UK ETS carbon falling 5.9% to £38.75/t.
As your trusted energy consultant, we would certainly not advise making any sudden decisions on a day with severe increases, but we do need to stay alert and be ready to act quickly if the market falls, balancing caution with responsiveness.
Analysts warn that this sharp surge in wholesale prices could filter through to higher household and business energy bills, drawing uneasy comparisons with the energy shocks seen during the Ukraine crisis.
Please contact the team if you have any questions or concerns over your energy contracts.
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