British households who have only recently seen some relief from sky-high energy costs are facing the prospect of bills rising once again, as the escalating military conflict in the Middle East sends gas prices sharply higher. The European benchmark gas price surged 41% on Monday, while the UK gas price rose 40% in a single trading session — moves that energy experts warned could feed through into higher household bills in the months ahead.
The immediate cause of the price spike was the announcement that QatarEnergy had suspended production at its major LNG facilities following drone attacks. Qatar accounts for around 6.5% of the United Kingdom’s LNG imports and is one of the most important suppliers to European markets. With production halted, the global LNG market faces a significant supply shortfall at a time when it is still recovering from the disruptions of 2022.
Energy experts warned that the price shock could prove particularly damaging for UK consumers. The combination of lower Qatari supply and increased competition from Asian buyers seeking alternative LNG sources could push European gas prices significantly higher. For households already facing financial pressure from elevated living costs, any sustained increase in gas prices would represent a serious additional burden.
Oil prices also rose sharply, adding to concerns about the overall cost of energy. Brent crude climbed to a 14-month high of $82 a barrel before easing somewhat. Fuel analysts warned that petrol prices, already on a rising trend, could climb to 140p or even 150p a litre if oil remains elevated. The combination of higher gas and petrol prices represents a broad energy cost squeeze that could affect household budgets across the UK.
Energy policy experts called for urgent government attention to the situation. They pointed out that while the UK had made progress in diversifying its energy supplies since the 2022 crisis, it remains exposed to global LNG market volatility. The current disruption underlines the importance of continued investment in domestic energy production, renewable energy capacity, and strategic gas storage to protect consumers from future external shocks.