Typical energy bill forecast to rise by £332 in July

Cornwall Insight says the recent surge in energy prices due to the Iran war is set to push up household bills.

The European Central Bank maintained its key interest rate at 2% amid escalating uncertainty caused by the Iran war, which has driven up energy prices and posed complex challenges for policymakers.

UK energy bills are set to decline by 7% from April 2026, but this relief is expected to be short-lived due to escalating global tensions, particularly the US-Israel conflict with Iran that began on 28 February.

Following the escalation of conflict involving US and Israeli strikes on Iran, heating oil prices in the UK have surged by over 113%, rising from approximately 60p to £1.28 per litre between late February and mid-March 2026.