Latest energy shock reminds Europe of its risky gas reliance

A conflict in the Middle East involving Israel, the US, and Iran has caused global fossil fuel supply disruptions, leading to a nearly 50% increase in European gas prices in early March 2026. The briefing highlights that the EU's fossil import bill rose by an estimated €2.5 billion in the first ten days of the crisis. It argues that countries with high gas reliance for electricity, such as Italy, are most exposed to price spikes, while those that have decoupled gas from electricity prices, like Spain, are more resilient. The author contends that electricity market reforms or removing carbon costs (EU-ETS) are less effective than investing in renewables and clean flexibility to ensure long-term energy security.

• Conflict in the Middle East led to the closure of the Strait of Hormuz and the Ras Laffan facility in Qatar, both of which are critical for global energy supplies; the former handles roughly 20% of global oil and LNG, and the latter produces about 20% of global LNG.
• European gas prices (Dutch TTF) rose from €31/MWh pre-conflict to an average of €45/MWh during the first week of the conflict (2–6 March), representing an increase of nearly 50%.
• The rise in fossil fuel prices during the first ten days of the current crisis is estimated to have cost Europeans €2.5 billion compared to pre-conflict levels.
• The impact of gas price spikes on electricity varies by country based on gas reliance; in 2026, gas influenced electricity prices in 89% of hours in Italy, compared to only 15% of hours in Spain.
• The cost of gas-fired electricity generation increased by more than 50% within 10 days of the conflict's start, an increase that is twice as large as the cost added by the EU Emissions Trading Scheme (ETS) carbon price.

APA

Ember (2026). Latest energy shock reminds Europe of its risky gas reliance. https://ember-energy.org/latest-insights/latest-energy-shock-reminds-europe-of-its-risky-gas-reliance

Chicago

Ember. Latest energy shock reminds Europe of its risky gas reliance. 2026. https://ember-energy.org/latest-insights/latest-energy-shock-reminds-europe-of-its-risky-gas-reliance.

Wikipedia

{{cite report |author=Ember |title=Latest energy shock reminds Europe of its risky gas reliance |date=13 March 2026 |url=https://ember-energy.org/latest-insights/latest-energy-shock-reminds-europe-of-its-risky-gas-reliance |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2026latest, author = {{Ember}}, title = {{Latest energy shock reminds Europe of its risky gas reliance}}, institution = {Ember}, year = {2026}, month = mar, url = {https://ember-energy.org/latest-insights/latest-energy-shock-reminds-europe-of-its-risky-gas-reliance}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }