Global gas and coal prices are soaring after oil amid an energy crisis due to the war in Iran

Global energy markets have been gripped by a massive wave of price increases: European natural gas prices have jumped by 30%, and coal has reached its highest levels since November 2024. The tenth day of armed conflict and the de facto closure of the Strait of Hormuz have caused disruptions in maritime supplies, pushing fuel futures to multi-month highs. This is reported by Bloomberg, writes UNN.

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European gas futures showed their largest weekly gain since the previous energy crisis, as the market realized the reality of prolonged supply chain disruptions. The situation is complicated by the fact that Europe is emerging from winter with depleted reserves, and will now have to compete with Asia for limited volumes of liquefied natural gas (LNG). Rabobank energy strategist Florence Schmitt predicts that shortages and supply disruptions could last at least three months.

LNG shortage and risks to the global economy

Morgan Stanley analysts warn that a halt in LNG production in Qatar, one of the largest exporters, could eliminate any expected gas surplus for this year. Any delay in Qatari fuel supplies for more than one month will inevitably lead to a severe shortage.

Against this backdrop, coal futures in Newcastle rose by 9.3%, reaching $150 per ton, as countries consider it an alternative to oil and gas, supplies of which from the Middle East are currently blocked.