How the Israel-Iran Conflict Could Affect the Energy Market

Updated: June 19, 2025

As tensions rise in the Middle East, the latest conflict between Israel and Iran has the potential to send shockwaves through global energy markets. While the focus in the media is largely on oil prices, the real impact for UK businesses lies elsewhere – in the electricity and gas markets that directly affect commercial energy bills.

At The Green Energy Advice Bureau, we’re already seeing signs of potential volatility. With growing fears around supply disruptions combined with an increased demand, energy prices, especially in the wholesale market, could begin to rise. For UK businesses -particularly those on flexible or soon-to-expire energy contracts – this presents a possible a risk.

Why this conflict matters for UK business energy

Although the UK doesn’t rely directly on oil or gas from the Middle East, it’s still highly exposed to global market pressures. Much of the UK’s electricity is generated using natural gas, and any disruption to the global gas supply – even if it’s thousands of miles away – can drive up prices here at home.

In fact, we’ve already seen gas supplies from Norway, a major UK supplier, disrupted due to capacity issues. With global gas prices climbing and LNG (liquefied natural gas) shipments being diverted to meet higher demand in Asia and Europe, UK wholesale electricity prices are being pushed higher. This isn’t a future risk – it’s happening now, and the full effects are expected to reach business energy bills within weeks.

The cost of waiting

For businesses that haven’t yet reviewed their energy contracts or procurement strategy, now is the time to act. Delaying could leave you exposed to sudden cost increases, especially if you’re approaching the end of your fixed deal.

We’ve seen time and again how geopolitical uncertainty leads to market speculation and price volatility. Fixing your energy rates today could protect your business from further increases and provide financial certainty during an already challenging economic period.

How we can help

At The Green Energy Advice Bureau, we specialise in helping businesses secure the best energy deals available – not just financially, but environmentally too. We offer full market analysis, tailored procurement strategies, and access to competitive green tariffs and renewable options.

If you’re unsure about your current energy position, we can quickly review your contract, assess your usage, and identify the best time to go to market. If you’re ready to explore sustainability for your business, we can also help you build a roadmap that aligns with your operational goals.

The conflict in the Middle East is yet another reminder that the global energy landscape is unpredictable. But your business doesn’t have to be. With expert guidance and a proactive approach, you can secure your energy, control your costs, and take meaningful steps toward a greener future.