The UK energy regulator Ofgem announced a 4% increase in the energy price cap starting October 1, 2026, which will add approximately £60 ($80) annually to the average household's bill. This comes as wholesale gas prices have sharply risen due to the intensified US-Israel war on Iran, with US attacks on Iran occurring again over the past weekend. In response, the UK government announced a tax cut on monthly electricity bills, effective until the end of the 2027 financial year, to mitigate the economic impact. Experts warn that the ongoing geopolitical situation, particularly concerning the Strait of Hormuz, means consumers will continue to pay a 'risk premium' for energy supply.