$330 Billion: War's Hidden Cost on Global Energy Imports
The ongoing war between the US, Israel, and Iran has significantly increased global energy import bills by $330 billion over six months, from March to August. This figure comes from the Centre for Research on Energy and Clean Air in Finland. The war's impact on oil prices was smaller than expected, but its effect on gas prices was equally unexpected.
The European Union suffered the most financial pain, with an extra import bill of $78 billion. China paid an additional $35 billion over this period, while India incurred an extra $22 billion in energy imports. The Centre for Research on Energy and Clean Air noted that these figures reflect actual purchases made by importing nations rather than what they would have bought if the war had not begun.
The price of liquefied natural gas (LNG) has averaged 75% higher in Asia and 60% higher in Europe compared to pre-war expectations. Oil prices are also significantly higher, with the International Energy Agency estimating that up to a fifth of refining capacity in the Middle East has been knocked out by hostilities.
However, there is a silver lining. Wind and solar energy sources have saved importers a total of $36 billion over the six-month period.