Full Breakdown
UK Energy Bills Set to Rise as Strait of Hormuz Remains Blocked, Governor Warns
9/9/2026, 3:33:18 AM
Rising Energy Prices Linked to Strait of Hormuz Disruption
Bank of England Governor Andrew Bailey told the Treasury Committee that the ongoing closure of the Strait of Hormuz could push UK energy prices “higher still.” He noted that while some oil is still flowing, “not huge amounts” are reaching markets, leaving the United Kingdom exposed to higher wholesale costs.
Background: Strait Closure and the Upcoming Price-Cap Increase
The crisis in the Strait began on February 28, after joint U.S.–Israeli strikes on Iran triggered an on-and-off blockade of the key shipping corridor. The route carries roughly 20 % of global oil shipments and a significant share of liquefied natural gas (LNG) exports. The blockage has already lifted UK utility bills, fuel prices and food costs.
Separately, the energy price cap—introduced in January 2019 to limit what suppliers can charge on default tariffs—will rise by 4 % from October 1. The regulator Ofgem said the change adds £60 per year (about £5 per month) to the average household bill, bringing the typical annual cost to £1,723 for electricity and gas combined, the highest level since July 2023.
Data & Statistics
- Strait of Hormuz blockage affects ~20 % of global oil shipments.
- Ofgem’s cap increase: 4 % rise, £60 extra per household per year, total £1,723 average bill.
- Emergency oil stock releases are in place but are expected to run only until about November.
Official Statements & Responses
Governor Bailey emphasized that emergency stock releases “can’t go on” indefinitely and that the current releases are projected to last until November. He also highlighted that Houthi attacks in the Red Sea continue to disrupt shipments.
Greater Manchester’s mayor, Andy Burnham, pledged to seek long-term measures to lower energy costs, though he faces criticism from political opponents who argue more immediate relief is needed.
Verbatim Quotes
- “The strait obviously remains largely closed. We think some [oil] is getting through, but not huge amounts.” — Andrew Bailey
