A major energy company has announced new price hikes due to the ongoing conflict in the Middle East.

The price of fuel has risen exponentially as a result of the US/Israel conflict in Iran, with the Strait of Hormuz — which transports 20% of the world’s liquefied natural gas and 25% of seaborne oil — being a huge point of contention.

With the Strait once again blocked off after US President Donald Trump said that the US would continue a blockade of the Strait, which may remain closed for months, the price of oil and fuel has remained high.

As a result, PrepayPower has announced that it has increased the prices of electricity and gas from next month.

A major energy company has announced new price hikes due to the ongoing conflict in the Middle East. Pic: Getty Images

The increases, which will take place on June 1, will see electricity prices rise by approximately 8.8% annually, and 10.6% annually on gas.

This, the company says, will see prices rise by €3.23 a week for electricity and €3.28 for gas.

The company added that this is the first price increase it has implemented in over three and a half years, and follows an eight-month price freeze that it had announced last October.

‘Sustained instability in global energy markets, driven by the ongoing conflict in the Middle East, has pushed wholesale energy costs significantly higher,’ the company said in a statement.

The blockade on the Strait of Hormuz continues as a result of the most recent conflict in the Middle East. Pic: Getty Images

‘PrepayPower has absorbed these increases for as long as possible but says it can no longer delay the adjustment.’

‘We’ve worked hard to protect our customers from rising energy costs — this is our first price increase in three and a half years, and last winter, whilst most other suppliers had to increase their rates, we went further by freezing prices when usage is at its highest,’ Eric Mullane, Managing Director of PrePayPower, said.

‘However, wholesale energy costs have continued to rise sharply, and it is simply not possible to hold out indefinitely. We will continue to do everything we can to minimise the impact on our customers and to help them control their energy costs.’

PrepayPower customers can manage the impact of the increase through the company’s app, which provides real-time usage tracking, daily spend visibility, and top-up.