FT reported an increase in gas prices in the EU to a maximum amid the conflict with Iran

European benchmark natural gas prices have increased by 170% compared to the level before the start of the current conflict in Iran. This was reported on October 13 by the Financial Times (FT) newspaper.

"Prices exceeded 86 euros per megawatt hour, which was the highest since the energy crisis of 2022, and this means an increase of about 170% since the beginning of the conflict over Iran, when they were about 32 euros per megawatt hour," the article says.

The main factors of pressure on the energy market were political uncertainty due to the supply of Russian diesel, as well as unscheduled maintenance work at the Norwegian Korste gas processing plant and key offshore fields, which led to a sharp reduction in pipeline exports.

The situation is exacerbated by the current conflict over Iran, which restricts the passage of liquefied natural gas tankers through the Strait of Hormuz and forces carriers to use longer routes around Africa. An additional factor is the official start of the heating season on October 1 and forecasts of a cold snap against the background of 73% occupancy of EU underground gas storage facilities.

Gas was given: fuel prices in Europe may stay at around $1,000 for a long time

The situation will lead to losses for EU companies and expensive electricity.

On the eve of the Reuters analysts reported that Europe will face at least another year of high gas prices, even in the event of a settlement of the conflict over Iran and a mild winter, as it will have to replenish its empty storage facilities. According to experts, the normalization of the market to a pre-conflict level will occur no earlier than 2028.

The Politico newspaper reported on October 9 that the European Union is facing a shortage of gas ahead of winter, which could lead to a sharp increase in utility bills. It was specified that Europe widely uses natural gas for heating buildings, industrial operation and electricity generation.