Energy markets are once again facing a period of intense uncertainty. This time, the main driver is the escalating conflict between Iran and the United States, which has increased pressure on global oil and gas supplies and pushed businesses to reassess their exposure to rising energy costs.
A key concern is the Strait of Hormuz, one of the world’s most important energy shipping routes. In 2024, around 20 million barrels of oil per day passed through the strait, equivalent to about 20% of global petroleum liquids consumption, according to the U.S. Energy Information Administration. Any disruption to this route can quickly affect global fuel availability, wholesale energy costs, transport prices and wider inflation.
Recent market movements show how sensitive energy prices are to developments in the region. Reuters reported that oil prices climbed about 3% on 27 April 2026 as U.S.–Iran peace talks stalled and shipments through the Strait of Hormuz remained limited, with Brent crude settling at $108.23 a barrel and U.S. West Texas Intermediate at $96.37. A few days later, Reuters reported that benchmark oil prices touched a four-year high amid concerns over further escalation and pressure on allies to help reopen the strait.
The International Energy Agency has also warned that the Iran conflict has materially changed the global oil outlook. In its April 2026 Oil Market Report, the IEA said oil demand is now expected to contract by 80,000 barrels per day this year, a sharp downgrade from its previous forecast, as higher prices and supply disruption weigh on consumption.
For businesses, the impact may be felt in several ways. Higher wholesale energy prices can increase electricity and gas bills, while rising oil prices can feed through into transport, logistics, manufacturing and imported goods. Businesses that rely on energy-intensive operations, vehicle fleets, refrigerated storage, international shipping or regular supplier deliveries may be particularly exposed.
The wider risk is not only higher prices, but unpredictability. Energy costs can shift quickly when geopolitical tensions affect supply routes, infrastructure or market confidence. This makes budgeting and forecasting more difficult, especially for businesses operating on tight margins or fixed-price contracts.
So, what can businesses do? The first step is to review current energy contracts, usage patterns and renewal dates. Businesses should also consider whether they can reduce consumption, improve efficiency, build more flexibility into pricing models, or speak to suppliers about fixed or flexible tariff options. Where energy is a major operating cost, scenario planning can help estimate how further price rises would affect cash flow and profitability.
While no business can control global energy markets, preparation can reduce exposure. The Iran-US conflict has highlighted how quickly geopolitical events can influence energy prices, and businesses that understand their risks early will be better placed to manage costs and protect operations.
How can businesses manage energy efficiently?
Businesses across the country are having to adapt to the rapidly changing energy market. So, it is important that they understand how to effectively mitigate rising energy prices. And this is only possible by getting their individual energy management plans in check.
There are a few ways to kick off your energy management process:
1) Speak to one of our Account Managers
Keeping an eye on the markets while deciding what is best for your business can be stressful and confusing. But managing your energy doesn’t have to be.
To reduce further financial risk, businesses need to have a good understanding of the energy market; including its ups and downs. We are here to take this off your hands.
At National Utility Hub, we are dedicated to making energy management as painless as possible. Our wide range of services make finding the perfect contract for you, simple and stress-free. We take care of your energy management so that you can focus on your business.
2) Audit and monitor
Energy audits make this process simple. By collecting your energy data and looking at factors such as lighting, heating and air conditioning, audits can suggest where to reduce your energy usage. By uncovering these insights, businesses could receive social, environmental and financial benefits.
SMEs are facing a number of obstacles as energy prices reach record heights, and this is only set to increase over the winter period. Meaning that getting ahead of the auditing game will only bring benefits and ease to said companies.
At National Utility Hub, we start by identifying the areas of inefficiency and waste that are driving up your energy costs. This tells us what changes need to be made to lower your bills and reduce risks.
3) Reduce consumption and increase efficiency
Energy supplies are low, and prices are increasingly high. So, it is imperative that businesses reduce consumption where possible. To do this they must first understand their current consumption and areas of high energy usage. This will give a clear picture of where energy is being used unnecessarily.
Energy efficiency within your organisations can bring numerous environmental and financial benefits. Against a backdrop of diminishing energy supplies and increasing prices, it is fast-becoming essential that businesses do what is best for them and the environment. Transparency surrounding energy efficiency could also increase a business’s standing, in a market where consumers are becoming increasingly aware of the environment. Making energy efficiency an essential part of an organisation’s path towards net zero.
Consider encouraging employees to incorporate efficiency into their daily lives. Such as switching off appliances when they leave the building, closing windows when HVAC systems are in use, and making the most of any natural light. These measures can go some way towards reducing your energy consumption and subsequent costs.
Talk to us
Get in touch to find out how we can help you manage your energy efficiently and avoid sky-rocketing prices.