For businesses: what does the Iran conflict mean for my energy prices? (March 2026)

Why is this impacting energy prices?

The conflict in the Middle East has sharply reduced global availability of oil and gas. Normally, about 20% of the world’s supply passes through waterways in the region. So, millions of barrels have been stopped from entering the global supply chain. This means oil and gas prices have gone up.

Gas still plays a decisive role in the UK grid. It generates electricity in a way that can be turned on or off in line with demand. So, it's used to balance grid energy levels.

Because of this dependence, gas price increases mean overall electricity costs go up. Even power from green sources feels the effects.

How will changing prices affect my business?

This depends on the type of tariff you’re on at the moment.

I’m on a fixed tariff

Your prices aren’t changing. They’ll stay the same for the length of your contract.

I’m on a fixed tariff that’s ending soon

You’re free to choose a new contract when you're ready. When you do, we’ll offer you the best rates available at that time.

These are likely to be higher than they were pre-conflict. Fixing a new contract would lock prices in for up to 24 months, protecting you from any more surges. But if prices fall again, you wouldn't feel the benefit of the decreases.

I’m on a flexible tariff

We regularly review our flexible rates to make sure they reflect the wholesale cost of energy. If these cost increases carry on, we may need to change your energy prices. But this won’t be for a couple of months at least.

We’ll always give you plenty of notice before we make any changes like this.

You're also free to choose a new fixed contract at any time.

What is Octopus doing to protect businesses’ energy prices?

We’re not changing fixed prices mid-contract

With Octopus, your rates are your rates. We never change them partway through your term.

We’re still offering new fixed contracts

If you want more certainty, you can fix your prices for up to 24 months.

We’re always working to keep your prices fair

Our 6 pricing principles make sure of it, even when wholesale costs rise.

What should I do now?

We don’t know what will happen in the coming weeks and months. Wholesale energy costs respond quickly to events. If the conflict ends, prices should fall again. That being said, nothing is certain.