The numbers
Gas prices have surged to four-year highs following recent attacks by Israel and Iran on gasfields, marking a significant shift in the energy market. Brent crude oil prices jumped by 8% to $116 a barrel before settling at $110, reflecting the volatility in global oil markets. This spike in crude prices has contributed to a broader increase in gas prices worldwide, with European gas prices soaring as well.
Specifically, the Dutch wholesale gas price surged by 24%, reaching €68 a megawatt hour. In the UK, gas prices rose by 23%, hitting 172 pence per therm, the highest level seen since August 2022. These figures illustrate the immediate impact of geopolitical tensions on energy costs.
The backdrop to this price surge is the ongoing US-Israeli war on Iran, which began on February 28, 2026. Since the onset of this conflict, crude prices have skyrocketed by 60%, demonstrating how quickly market dynamics can shift in response to geopolitical events. The attacks have also had a direct impact on production, with Iran damaging facilities that account for 17% of QatarEnergy’s liquefied natural gas export capacity.
Energy consultancy Wood Mackenzie has noted that the attacks on Qatar’s LNG hub have altered the global gas market outlook, indicating that supply disruptions could lead to sustained higher prices. Susannah Streeter, a market analyst, commented, “Fears of a sustained energy shock have resurfaced after the escalation in the Iran war sent oil and gas prices soaring.” This sentiment underscores the anxiety surrounding energy supplies in the wake of recent events.
Furthermore, authorities in Abu Dhabi have been forced to shut down operations at its Habshan gas facility and Bab oilfield due to the Iranian attacks, further constraining supply. This situation raises concerns about the long-term availability of liquefied natural gas (LNG) on the world market. As one expert noted, “This will almost certainly cut off a level of supply of LNG to the world market,” emphasizing the potential for ongoing price increases.
Market analysts are now warning that oil prices could reach as high as $150 a barrel if the situation escalates further. Streeter remarked, “Warnings that oil could reach $150 a barrel have resurfaced,” highlighting the precarious nature of the current energy landscape. The implications of these price increases extend beyond just fuel costs, affecting various sectors of the economy and consumer spending.
As the situation develops, observers are closely monitoring the energy markets for any signs of stabilization or further disruption. The interconnectedness of global energy supply chains means that any significant changes in one region can have ripple effects worldwide. Details remain unconfirmed regarding the full extent of the damage to production facilities and the potential for recovery.
In summary, the recent surge in gas prices is a clear indicator of how geopolitical tensions can swiftly influence global markets. With prices at their highest in four years, consumers and businesses alike are bracing for the potential economic fallout as the situation in the Middle East continues to unfold.