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

Written by Melvyn Wilson | Jul 6, 2026 1:30:00 PM

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.

  • Peace talks remain slow and fragile, keeping prices stubbornly high.

  • Liquefied natural gas (LNG) supply and storage remains down.


What happened in the energy market this week?

Week commencing Monday 6th July 2026

Prices rose over the course of the week, driven by a combination of geopolitical risk, predominantly US-Iran relations, ongoing concerns over LNG flows through the Strait of Hormuz and increasingly confident forecasts of more European heatwaves.

Strong flows from Norway offered some relief but markets remain strained due to ongoing concerns over LNG availability.

Overall, the market focus has shifted from immediate supply adequacy toward winter preparedness and the potential tight supply of global LNG later in the year 

Why did business energy prices rise and fall this week?

  • Geopolitical events: US-Iran peace remains a key driver of prices, but peace talks have made slow progress during the mourning period for Ayatollah Ali Khamenei.

  • Global supply: Concerns are mounting around the pace of Qatar's recovery to normal export quantities.
  • Storage: EU storage levels of liquified natural gas (LNG) are around 10% below 2025 levels, but Norwegian flows continue to be strong.
  • Weather: Further European heatwave forecasts look set to increase demand for cooling.

What this means for your business

Looking ahead, market attention will remain firmly focused on developments in the Middle East, particularly the progress of US-Iran negotiations and any implications for shipping through the Strait of Hormuz.

At the same time, forecasts for sustained hot weather across Europe are expected to support power demand and gas consumption through July.

While strong Norwegian supply and the possibility of US-Iranian diplomatic progress could ease prices, concerns over LNG availability, below-average storage levels and growing global competition for supply could keep prices up.

Volatility is expected to remain high as traders balance geopolitical risks against underlying supply and demand fundamentals heading into the second half of summer.

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

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

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.