European electricity prices rise 60% due to war against Iran

Pars Today – Electricity prices in Europe have risen by 60 percent due to the war against Iran, driven by a shortage of natural gas.

According to Pars Today, citing Tasnim News Agency, as Europe approaches the winter season, the region’s electricity markets are issuing their strongest warning since the energy crisis, once again raising concerns about higher energy costs and mounting pressure on European electricity markets.

The wholesale electricity price for delivery in January in Germany, Europe’s largest economy, has risen to more than €180 per megawatt-hour on the European Energy Exchange (EEX). This figure is more than 60 percent higher than during the same period last year, indicating that Europe’s electricity market is facing significant pressure ahead of the cold season.

The main factor behind the rise in electricity prices is natural gas. Gas prices have surged in recent weeks as Europe faces greater difficulties in replenishing its gas reserves as winter approaches. At the same time, competition among different countries to secure supplies of the fuel has intensified, putting further pressure on the gas market.

The war against Iran has added to these pressures. The closure of the Strait of Hormuz has disrupted the transportation of some energy shipments and affected Europe’s access to Qatari gas supplies. Qatar is one of the major suppliers of liquefied natural gas (LNG) to the global market, and any disruption to its exports could affect energy prices and security of supply in Europe.

Overall, rising gas prices, Europe’s difficulties in replenishing its reserves before winter, and disruptions to energy supply routes have once again put the region’s electricity market under pressure, raising concerns about the outlook for energy prices during the coming cold months.