The price of gas in Europe exceeded $700 due to the closure of the Strait of Hormuz

The price of gas on the European stock exchange exceeded $700 per 1,000 cubic meters for the first time since January 2023, according to data from the London ICE Exchange on March 3.

According to the trading platform, earlier the price rose above $650 per 1 thousand cubic meters for the first time since February 2023. The current dynamics are recorded against the background of statements by the Islamic Revolutionary Guard Corps (IRGC) of Iran about the closure of the Strait of Hormuz.

The increase in quotations since the beginning of the trading day exceeds 30%.

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The day before, Maxim Chirkov, an economist and associate professor at the State University of Management, told Izvestia that the escalation of the conflict in the Middle East could lead to serious consequences for the global economy, primarily for the oil and gas markets. According to him, up to 20% of the world's oil supplies and more than 30% of liquefied natural gas pass through the Strait of Hormuz, so any disruptions can have a significant impact on the global energy market.

The day before, the Strait of Hormuz in southern Iran, which is used for the passage of oil tankers, was completely closed by the IRGC. Some major oil companies and leading trading houses have suspended the supply of crude oil and fuel through the Strait of Hormuz due to Israeli and US strikes on Iran.

On February 28, the United States and Israel launched a large-scale military operation in Iran. US President Donald Trump called her goal the protection of the American people. Israel and the United States have carried out numerous attacks on military and civilian targets in Iran, including a school in the city of Minab.

All important news is on the Izvestia channel in the MAX messenger.