Energy market update: What UK businesses need to know this week

Our weekly round-up of issues affecting your business energy prices today.

Key takeaways:

• Energy supply is tight due to restricted flow from the Middle East amid US-Iran conflict.

• Risk is high due to uncertainty surrounding peace talks between the two nations.

• Re-escalation in the conflict looks more likely at present due to renewed strikes.

Energy markets are riding a rollercoaster in 2026 - and your business is paying for it.

We understand how it feels to be at the mercy of global events beyond your control. It's an unnerving situation at best, highly damaging for business at worst.

Troo energy trading expert Melvyn Wilson offers weekly guidance to help break down the major forces driving wholesale energy prices this week.

What happened in the energy market this week?

Updated: Thursday 28th May 2026

The UK energy market experienced a highly volatile week, with the US-Iran conflict continuing to be the dominant factor in market price movements.

Peace talks have continued amid a backdrop of renewed strikes from both sides.

However, warm weather and wind in the UK led to increased production from renewable sources, including wind and solar power, to reduce gas demand.

Why did business energy prices rise and fall this week?

• Geopolitical events: Renewed drone strikes from Iran on UAE infrastructure and retaliatory US air strikes continue to overshadow peace talks and keep markets volatile.

• Global supply: European imports fell sharply this week, while US exports are lower due to freeport and other maintenance outages.
• Storage: EU storage levels of liquified natural gas (LNG) are around 8% below 2025 levels.
• Weather: Warmer forecasts and increased renewable (wind) generation helped reduce near-term gas demand.

What this means for your business

Looking ahead, energy markets are expected to remain volatile, with the direction of travel largely dependent on the outcome of US–Iran negotiations and the stability of key supply routes such as the Strait of Hormuz.

While short-term fundamentals, such as warmer weather and stronger renewable generation, may continue to weigh on prices, underlying issues remain.

Below-average storage levels and ongoing LNG supply risks are likely to keep prices elevated. There is increased potential for price spikes later in the year if gas storage levels fail to improve or geopolitical tensions re-escalate.

Analysts do not see wholesale energy prices dropping significantly in 2026 even if the conflict is resolved, with expectations they may rise further.

Businesses approaching their contract renewal may want to monitor the market closely over the coming weeks, particularly if geopolitical tensions continue to escalate.

Those on flexible contracts should prepare for continued volatility heading into the second half of 2026.

How we can help

Troo exists to help businesses make sensible decisions and stay on top of their energy issues in a topsy-turvy world.

We are on hand to offer more quick, practical guidance when you book a free energy health check today. We’ll review a recent bill, talk through your setup and kit list, and discuss immediate wins plus longer-term upgrade ideas.