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

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.

Geopolitical events in the Middle East continue to affect your small business from afar, but how long can we expect prices to remain high?

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

TL;DR:

• US-Iran conflict remains the dominant driver of prices.

• Tensions continue in the Strait of Hormuz.

• Fragile diplomatic negotiations remain critical to prices.

What happened in the energy market this week?

Week commencing Monday 17th August 2026

Gas, power and oil prices moved higher as geopolitical tensions in the Middle East continued to dominate.

The primary driver remained uncertainty surrounding attempts to reopen the Strait of Hormuz, with negotiations between the US and Iran repeatedly stalling and renewed attacks on shipping adding further risk to markets.

UK gas and power prices rose back to levels last seen at the start of the conflict in March. Crude oil prices have also seen a sharp rise during the week.

Markets will continue to be propped up by concerns over disruptions to oil and LNG supplies through key Middle East export routes. 

Why did business energy prices rise and fall this week?

• Geopolitical events: Early optimism that Iran, Oman, and the US could reach an agreement faded as negotiations stalled and both sides hardened their positions.

• Global supply: LNG imports provided some reassurance, with arrivals increasing towards the end of the week. However, imports remain below levels typically required to comfortably achieve Europe's storage targets before winter.
• Storage: European gas storage remained a key focus throughout the week. Inventories moved to 61%, remaining significantly below last year's levels and increasing concerns about preparedness for the winter heating season.
• Weather: Ongoing heatwaves across Europe earlier in the week increased power and gas-fired generation to meet air conditioning requirements. Temperatures are set to drop, however.

What this means for your business

Looking ahead, market direction is likely to remain heavily influenced by developments in the Middle East.

Any progress towards reopening the Strait of Hormuz or reducing regional tensions could lower prices.

However, with negotiations appearing deadlocked and security incidents continuing, traders are expected to remain cautious.

European storage levels and LNG import trends will remain critical indicators as the market moves closer to winter.

While improving LNG arrivals and recovering nuclear output offer some relief, supply security concerns, low inventories, and ongoing geopolitical uncertainty are likely to keep gas, power and oil markets pushed up in the near term. 

How we can help

The world is changing. It can be scary. You know you need to stay on top of the news, but that can be difficult while focusing on running your business and serving your customers.

We get it. We can support you.

Troo exists to help businesses like yours make sense of their energy needs, simplify complex information and make smart decisions that lead to real change and reduced costs.

We are not here to sell you a quick fix. We're here to understand what matters to you, offer clear advice, and take ownership of the hard parts, so energy becomes one less thing to worry about.

Book a free energy health check today for practical guidance on your business electricity, gas or water bills.