Energy bills in Britain to jump 13% on impact of Iran war

* Regulator Ofgem raises price cap from July

* Ofgem blames Middle East conflict for ​higher wholesale gas ⁠prices

* Consumer groups urge support for low-income households

* Analysts expect further ​price cap hikes as Iran-US tensions persist (Adds with government comment in paragraph 3, adds details in paragraph 4, consumer group comment from 6)

May 27 (Reuters) - British ​households ‌will face higher energy bills averaging £1,862 a year from July after regulator Ofgem hiked its price cap by 13% on soaring wholesale gas prices caused by the ⁠conflict in the Middle East.

The increase, up around £221 from the previous ⁠cap of £1,641 for April to June, will hit millions ​of households on variable tariffs, with analysts warning bills could climb further if disruption to shipments through the Strait of Hormuz persists.

The rise piles further pressure on Prime Minister Keir Starmer as households struggle with rising living costs.

“The rise in the price cap because of a war ​we did not choose ‌is deeply unwelcome news for households across the country. We know people were under pressure before this crisis, and that’s why easing that burden is our number one priority,” Energy Minister Ed Miliband said in a statement.

Wholesale British gas prices are around 45% higher than they were before the United States began military action against Iran on February 28, blocking the transit route for a fifth of the world's ​liquefied natural gas.

Wholesale costs are the biggest single driver of Ofgem's quarterly price cap, which limits what suppliers can charge households and also ‌reflects network costs and environmental levies.

CALLS FOR MORE HELP Consumer groups urged the government to lay out plans to provide support for households.

“Now is the time for the government to set out targeted interventions ‌to help those on the lowest incomes afford their energy and to clear their debt,” National Energy Action Chief Executive Adam Scorer said.

The government says its push to reduce reliance on gas and increase renewable capacity such as wind and solar will cut costs in the longer ​term. In April, it also shifted some levies to cut around £150 from an average bill.

Even so, the new price cap is around 46% higher than in ‌the winter of 2021/22, before Russia's invasion of Ukraine led to a spike in global energy prices.

FURTHER RISES EXPECTED With Iran-U.S. tensions unresolved, Cornwall Insight forecasts the cap rising further to £1,899 from October.

Britain's economy has struggled to grow in recent years and the higher energy prices could further ⁠weigh on confidence. Recent ⁠data shows Britons are the least willing to make big purchases in almost a year ‌and a half, while shoppers are buying fewer items and hunting for cheaper deals when buying food.

The BoE expects consumer price inflation to reach about 4% by the ​end of the year. British ​inflation has been above the BoE’s 2% target for all but a few months of the ‌past five years.

Ofgem said people are using less gas and electricity than before so its next typical household energy use figure will reflect that. The price cap on standard tariffs was introduced in 2019 and covers about two-thirds of households.