Gas prices skyrocket due to attacks in Middle East
The gas price on the stock exchange has risen sharply in recent weeks due to the conflict in the Middle East. This makes it more expensive for energy suppliers to buy gas. Ultimately, this could also lead to higher prices for consumers.
On the European gas exchange in Amsterdam, the gas price has risen by 19 percent since June 10, to 41.1 euros per megawatt hour.
The price that consumers pay for gas is partly determined by the purchase price, but also by taxes and the profit margin of the suppliers. In addition, energy suppliers buy their gas largely in advance. All this ensures that the consumer price will not suddenly shoot up, but the longer the price is high, the more customers will notice it.
Strait of HormuzThe rising price is mainly due to the fear that Iran will decide at some point to close the Strait of Hormuz, a narrow strait on the Persian Gulf. A lot of liquefied natural gas (LNG) from the Gulf States is transported via this strategic strait by tankers, including to Europe. Iran could target or stop these tankers.
According to investment bank Goldman Sachs, in that case the gas price could rise to more than 70 euros per megawatt hour. And if these disruptions last much longer, the price could even go to 100 euros, according to Goldman Sachs.
Oil considerably more expensiveOil prices have also risen sharply in recent weeks, although markets remain relatively calm after the US attack on a number of nuclear complexes this weekend. Oil has become about a quarter more expensive since the beginning of the month.
Besides Iran being a major oil producer, a lot of oil is also transported through the Strait of Hormuz. If that comes to a standstill for whatever reason, the oil supply will drop significantly, causing prices to rise. The fear of that scenario also ensures that a higher price is already being paid.
More expensive gasolineThe rising oil price is also noticeable at the pump for motorists, although it is still not that bad. Since the beginning of the war, the price of a liter of gasoline along the highway has increased by about 4 cents, according to data from United Consumers .
The Americans have used special bombs to destroy Iran's nuclear complexes. This is how these so-called bunker busters work:
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