Iran War Disrupts European Energy Supply Routes, Electricity Prices Soar

Europe's electricity market is facing significant pressure as wholesale prices surge ahead of winter. The war against Iran has disrupted energy supply routes, including the Strait of Hormuz, which has affected Europe's access to Qatari gas supplies. This has led to a 60% increase in electricity prices, with the price for delivery in January in Germany rising to over €180 per megawatt-hour on the European Energy Exchange (EEX).

The main factor behind the rise in electricity prices is natural gas, which has surged in recent weeks due to Europe's difficulties in replenishing its reserves. The competition among different countries to secure supplies of gas has intensified, putting further pressure on the gas market.