The Financial Times reports significant increases in gas prices across Asia and Europe as war erupts in Iran, causing a near-total shutdown of the Strait of Hormuz, a critical passage for energy exports. This situation has led to an effective halt in liquefied natural gas exports from Qatar, further straining the global gas market.

The impact of this new conflict is projected to be more severe than that of the 2022 crisis following the Russian-Ukrainian war, with an anticipated loss of up to 120 billion cubic meters of gas from the Middle East, compared to the 80 billion cubic meters lost from Russia during the previous conflict. Analysts, such as Natasha Fielding from Argus Media, suggest that while a prolonged war could create significant disruptions in the market, a short-lived conflict could limit its potential impact.

Currently, gas prices have not yet reached the peak levels seen in 2022, where European gas prices soared above 343 euros per megawatt-hour. However, prices are still rising sharply, with a 20% increase noted on a Tuesday to 56.5 euros (approximately $65.66) per megawatt-hour, indicating a volatile and potentially alarming trend in the energy sector as the situation in Iran develops.