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 24th August 2026

Energy markets rose sharply over the week, with short-term gas prices reaching their highest levels since 2022 as geopolitical tensions in the Middle East continued to dominate the markets.

Ongoing disruption and uncertainty surrounding the Strait of Hormuz, combined with persistently low European gas storage levels and concerns over winter supply security, outweighed improving LNG supply data.

While increased LNG imports into Europe offered some relief, the market remained focused on potential supply risks and the impact of any further escalation in US-Iran tensions 

Why did business energy prices rise and fall this week?

• Geopolitical events: Negotiations between the US and Iran remained deadlocked throughout the week. Markets remained sceptical that a resolution or full restoration of LNG flows was imminent.

• Global supply:  LNG imports into Europe increased during the week, helping to ease some supply concerns. However, traffic through the Strait of Hormuz remained significantly below normal levels, raising concerns over LNG and oil supply reliability.
• Storage: EU gas storage improved slightly during the week, rising from around 61.1% to 61.8% full. Despite the increase, storage levels remained approximately 13% below last year's levels and among the lowest seasonal levels on record.
• Weather: Forecasts show temperatures around average for the UK and Europe in the coming week helping to ease cooling demand although French nuclear output is still restricted due to low river flows.

What this means for your business

Looking ahead, market direction is likely to remain heavily influenced by developments in the Middle East, particularly any changes to shipping activity through the Strait of Hormuz and the implementation of further US sanctions on Iran.

Although rising LNG imports and improving storage injections are helping to ease some supply concerns, European inventory levels remain historically low for this time of year.

As a result, gas and power markets are expected to remain sensitive to geopolitical headlines, with winter supply security continuing to keep prices high.

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.