The media reported an increase in gas prices in Europe due to the conflict in the Middle East

Natural gas prices in Europe have risen due to fears of an even greater escalation of the conflict between Iran and Israel. This was reported by Bloomberg on June 17.

"Futures for benchmark oil companies rose by 1.8% after sharp trading in the previous session <...>. Futures for the next month for Dutch gas, the European benchmark gas, rose by 0.6% to €38.12 per megawatt hour by 8:52 a.m. (7:52 a.m. Moscow time) in Amsterdam," it says. in the agency's publication.

It is clarified that gas traders fear disruption of gas supplies through the Strait of Oman due to the escalation of the conflict in the Middle East. It is considered an important transportation hub for maritime supplies and an obstacle to gas exports from Qatar and the United Arab Emirates (UAE). Almost 20% of global energy trade passes through this strait.

"If the "narrow corridor" is closed, it will have a serious impact on the markets. We are seeing a growing risk that as winter approaches, the market may start to worry about storage volumes," Arne Lohmann Rasmussen, chief analyst at Global Risk Management, was quoted as saying by the agency.

Currently, the supply of liquefied natural gas is not affected, however, any failure may negatively affect the market during the resource accumulation season in Europe. In addition, Israel attacked the South Pars gas field in the Islamic Republic, which led to the shutdown of the production platform.

And oil: Brent is forecast to rise to $100 amid the Iranian-Israeli conflict

How did the markets react to the new round of escalation in the Middle East and what to expect next

Israel struck Iran on June 13 and declared a state of emergency. Prime Minister Benjamin Netanyahu said that the purpose of the military operation is to strike at Iran's nuclear infrastructure. In response, Iran launched several waves of missile attacks.

On the same day, Reuters reported that oil, gold and Swiss franc prices rose due to Israel's military operation against Iran. As Vasily Koltashov, an economist and head of the Center for Political Economic Research at the New Society Institute, told Izvestia, oil prices could soar to $100 per barrel amid a new round of conflict in the Middle East.