Households across Great Britain are set to face higher energy costs from July, with Ofgem announcing a 13% increase to the energy price cap following a surge in wholesale gas and electricity prices.

The increase means a typical household on a variable tariff will see annual energy bills rise by £221 to £1,862, equivalent to around £18 extra per month.

The latest rise has been driven by escalating tensions in the Middle East, with concerns over energy supplies following Iran's move to block the Strait of Hormuz – a key global shipping route through which around 20% of the world's oil and gas passes.

The impact will be felt most acutely in gas bills, which are expected to increase by 24%, while electricity costs will rise by around 5%.

The revised price cap applies to millions of households in England, Scotland and Wales and has prompted concerns that further increases could follow if wholesale market volatility continues into the winter months.

For businesses, particularly those in energy-intensive sectors such as hospitality, leisure and retail, the increase serves as a reminder of the ongoing pressures facing energy markets and the potential knock-on effects on consumer spending and operating costs.