Middle East Conflict Drives Up Energy Prices in Europe

The ongoing conflict in the Middle East is driving up energy prices in Europe. The damage to a Saudi Arabian oil pipeline that carries oil to the Red Sea has pushed Brent crude prices to nearly $110 per barrel, while European TTF natural gas prices have surpassed 80 euros per megawatt-hour.

However, prices have recovered somewhat towards the end of the week, with Brent falling to around $102 per barrel and natural gas to around €77 per megawatt-hour. Despite this, these levels remain significantly higher than at the start of 2026, with oil prices up by around 70% and gas prices up by around 180%.

The European Commission President, Ursula von der Leyen, has stated that since the conflict began in late February, the European Union has paid around €90 billion more for fossil fuel imports for the same amount of energy.