The numbers
Gas prices have jumped to four-year highs following escalating tensions in the Middle East, particularly after recent attacks by Israel and Iran on gasfields. Brent crude oil prices surged by 8% to $116 a barrel before settling at $110, marking a significant spike amid ongoing geopolitical unrest.
In Europe, the impact was immediate, with the Dutch wholesale gas price soaring by 24% to €68 per megawatt hour. The UK also felt the brunt of the crisis, as gas prices rose by 23% to 172p a therm, the highest level since August 2022. This surge in prices is largely attributed to the ongoing conflict that began with the US-Israeli war on Iran on February 28, 2026, which has seen crude prices increase by 60% since its onset.
Iran’s aggressive actions have severely affected global energy supplies, damaging facilities that account for 17% of QatarEnergy’s liquefied natural gas export capacity. As a result, energy consultancy Wood Mackenzie has indicated that the attacks on Qatar’s LNG hub have fundamentally altered the global gas market outlook, leading to fears of a sustained energy shock.
Authorities in Abu Dhabi have also responded to the crisis by shutting down operations at its Habshan gas facility and Bab oilfield due to Iranian attacks, further tightening the supply chain. “Fears of a sustained energy shock have resurfaced after the escalation in the Iran war sent oil and gas prices soaring,” stated Susannah Streeter, highlighting the gravity of the situation.
Market analysts warn that the current trajectory could lead to even higher prices, with predictions that oil could reach $150 a barrel. This potential increase underscores the precarious nature of global energy supplies, as the price of gas in the world market is expected to rise due to the inability to quickly substitute lost supply. “This will almost certainly cut off a level of supply of LNG to the world market,” noted an industry expert.
As the situation unfolds, the ramifications for consumers and businesses alike are becoming increasingly apparent. The energy crisis is not only affecting gas prices but also contributing to broader economic instability, as evidenced by a 3.4% decrease in Japan’s Nikkei and a 2.4% drop in the FTSE 100. Observers are closely monitoring the developments, with many bracing for further volatility in energy markets.
Details remain unconfirmed regarding the full extent of the damage to energy infrastructure and the long-term implications for global gas supplies. As the conflict continues, the international community watches with bated breath, aware that the stakes have never been higher in the energy sector.