Home » Business » Rising European Gas Prices Sparked by Middle East Conflict: Latest Updates and Impact on Global Markets

Rising European Gas Prices Sparked by Middle East Conflict: Latest Updates and Impact on Global Markets

By our economics editors

20 Oct 2023 at 12:00

The European price for natural gas has risen again due to fears that the conflict in the Middle East is increasing. Previously, the gas price actually fell.

On the Amsterdam gas exchange, the price for deliveries in November rose by more than 2 percent on Friday morning to 51.25 euros per megawatt hour. On a weekly basis, the gas price has fallen slightly.

But the price is still about 35 percent above the level before Hamas’ attack on Israel on October 7. Last week, gas prices even reached their highest level since February.

The gas price previously fell due to milder weather forecasts for Europe. The United States’ efforts to contain the conflict between Israel and the Palestinian militant movement Hamas also contributed.

Concerns are growing that the US is becoming involved in a broader regional war in the Middle East. For example, the Pentagon said it was seeing more drone attacks on American troops in Iraq and Syria. A US destroyer also intercepted cruise missiles fired at Israel by Houthi rebels in Yemen.

In addition, US President Joe Biden has made a direct appeal to the American people to support Israel’s financing and Ukraine’s war efforts.

Conflict leads to closure of large Israeli gas field

Since the outbreak of the war between Israel and Hamas, the border between Israel and Lebanon has also been very turbulent. The militant movement Hezbollah from Lebanon has been firing rockets across the border for almost two weeks, to which Israel has responded with counterattacks.

The conflict has so far led to the closure of a major gas field in Israel, which supplies Egypt. That could limit Egypt’s exports of liquefied natural gas (LNG).

Egypt’s LNG exports to Europe are not large. But a broader conflict and potential Iranian involvement could increase security risks for Qatari LNG ships transiting the Strait of Hormuz. Iranian involvement could also pose security risks to international gas pipelines in the region.

Beeld: Getty Images

Read more about:

EconomyGas price
2023-10-20 10:00:16
#Gas #prices #rising #due #fears #increased #unrest #Middle #East #Economy

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.