Conflict in Iran and its impact on energy markets

At the time of writing, the US–Israel war with Iran is ongoing. The Strait of Hormuz, through which 20% of the world’s oil and a fifth of global Liquid Natural Gas (LNG) normally passes, remains effectively closed. Oil prices have swung wildly and UK wholesale gas is up nearly 90% in a month. The household energy price cap is forecast to rise 20% from July.

The bottom line: energy costs are rising, markets are volatile, and no resolution is in sight. Now is the time to act.

As of 26 March 2026:

• Brent crude oil is now $100 a barrel – up £73, peaked so far at $120.
• UK wholesale gas is up 89% in the last 30 days.
• UK diesel at the pump is up 13% since 27 February 2026.

1. Check your contract status - today

If you are out of contract, you are on your supplier’s default rates and those rates are rising fast. Moving to a fixed contract should be your immediate priority. If your contract is due for renewal in the next six months, get a benchmark quote now so you have a reference point, even if you choose to wait.

2. Consider locking in part of your usage

You do not have to fix everything at once. Changing a portion of your energy requirement to a fixed contract protects you against further rises while keeping flexibility if prices ease. In a market this volatile, a blended approach often makes sense. Talk to us about how to structure this.

3. Take a whole-estate view

Look at electricity, gas, heating oil, LPG and transport fuel across every property and business. A holiday let on oil-fired heating, a farm on a flexible gas tariff and a commercial unit nearing renewal have different requirements. Map them, prioritise the biggest risks, and deal with those first.

4. Challenge your current costs

If you are already on a fixed contract, check you are actually on the rate you agreed. Review your bills for standing charges, non-commodity costs and any unexpected increases. If your supplier has changed terms or you suspect you are not getting what was quoted, get a second opinion.

5. Reduce what you use

The cheapest unit of energy is the one you don’t use. Simple measures can make a meaningful difference: review heating schedules, check timers and controls, upgrade lighting to LED, draught-proof buildings, and consider smart meters if you do not already have them. For larger estates, a professional energy audit can identify where the biggest savings lie.

6. Accelerate your renewables plan

Every kilowatt hour you generate on-site is a kilowatt hour you are not buying from a volatile market. Solar PV, battery storage, biomass and heat pumps all reduce your exposure to risk. If you have been considering a renewables project, the current crisis strengthens the business case. The payback periods that seemed marginal twelve months ago look very different at today’s prices

Not sure where you stand? We’ll tell you.

CLA Energy Services compares prices from 28+ UK suppliers with full transparency on costs and commissions. CLA members are entitled to a free health check. We’re happy to review your contracts, check your exposure and find the best available rates at no obligation.

Call: 0808 164 6151

Email: energyservices@cla.org.uk