The numbers
Gas prices have surged to four-year highs following a series of attacks by Israel and Iran on gasfields, sending shockwaves through global energy markets. Brent crude oil prices initially spiked by 8% to $116 a barrel before settling at $110, while European gas prices soared, with the Dutch wholesale gas price increasing by 24% to €68 per megawatt hour.
In the UK, gas prices rose by 23%, reaching 172 pence per therm, marking the highest level since August 2022. This dramatic increase is part of a broader trend, as crude prices have skyrocketed by 60% since the onset of the US-Israeli war on Iran, which began on February 28, 2026.
The conflict has had direct implications for global energy supply, particularly after Iran targeted facilities that accounted for 17% of QatarEnergy’s liquefied natural gas export capacity. The energy consultancy Wood Mackenzie noted that these attacks have significantly altered the global gas market outlook, raising fears of a sustained energy shock.
Authorities in Abu Dhabi have responded to the escalating situation by shutting down operations at the Habshan gas facility and Bab oilfield, further constraining supply. Susannah Streeter, a market analyst, expressed concern, stating, “Fears of a sustained energy shock have resurfaced after the escalation in the Iran war sent oil and gas prices soaring.”
As the conflict continues, experts warn that the price of gas in the world market will inevitably rise, as the supply of liquefied natural gas (LNG) cannot be quickly substituted. One analyst remarked, “This will almost certainly cut off a level of supply of LNG to the world market,” emphasizing the long-term implications of the current crisis.
Warnings have also resurfaced that oil prices could reach $150 a barrel, a stark reminder of the volatility that characterizes the energy sector during geopolitical tensions. The immediate impact has been felt across markets, with Japan’s Nikkei index dropping by 3.4% and the FTSE 100 declining by 2.4% as investors react to the uncertainty surrounding energy supplies.
As the situation develops, observers are closely monitoring the potential for further escalations and their impact on global gas prices. Details remain unconfirmed regarding the long-term effects of these attacks on energy supply chains, but the current trajectory suggests that consumers may face higher prices at the pump in the coming months.
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