Europe Faces Energy Shock as Middle East Conflict Escalates

(MENAFN) The US and Israeli strikes on Iran, coupled with Iran’s retaliatory attacks on energy infrastructure and the partial closure of the Strait of Hormuz, have triggered sharp volatility in global energy markets, highlighting Europe’s heavy reliance on imported natural gas.

Over the past month, natural gas prices across Europe have nearly doubled, with dependence on Gulf countries reaching up to 40% in some nations. Policymakers are scrambling to implement immediate measures to offset shortages and curb rising energy costs, which threaten regional economies. Some countries are even reconsidering the planned shutdown of nuclear plants to maintain stable energy supplies.

From Feb. 28 to March 26, April futures contracts for gas in the Netherlands climbed 89.4%, rising from €31.5 ($36.2) per megawatt-hour to roughly €54.5, according to the Dutch TTF trading point.

Other European countries also saw dramatic price increases: France (+81.8%), Spain (+78.9%), Belgium (+77.4%), the UK (+75.6%), the Netherlands (+74.7%), Germany (+74.1%), Czechia (+71.2%), Austria (+69.7%), Denmark (+69%), Lithuania (+48.6%), Finland (+43.6%), and Latvia and Estonia (+41.55%), as reported by the European Energy Exchange Spot Prices index.

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