Gas and oil prices soar due to the war in the Persian Gulf

BarcelonaThe armed conflict in the Persian Gulf triggered a surge in oil and natural gas prices on Monday, as well as a drop in stock markets, due to uncertainty and disruptions to shipping traffic in the region, particularly through the strategic Strait of Hormuz. The price of Brent crude, the European benchmark, rose a notable 8.2% to $78.95 per barrel by 1:30 PM. Similarly, natural gas prices jumped 36% to €43.6 per megawatt-hour (MWh). Energy and financial markets reacted as expected to the escalating conflict that began on Saturday with the US and Israeli airstrikes in Iran, and to the response from the Tehran regime. Iran has also launched air strikes against Israel and most of the Persian Gulf countries and parts of the Middle East that have ties to the US, such as the United Arab Emirates, Saudi Arabia, Oman, Bahrain, Qatar, Iraq, Kuwait, and even British military bases. Israel has also bombed Hezbollah positions—the Shiite militias allied with Iran—in Lebanon.

The conflict has forced the closure of airspace in the region and casts doubt on the continued flow of oil tankers through the Strait of Hormuz, the gateway between the Persian Gulf and the Indian Ocean, through which between 20% and 30% of the world's oil is consumed each year. One of the most significant problems is that, with the outbreak of war in the area, most insurance companies for ships transiting the strait have begun withdrawing their coverage, preventing the continued transport of oil and refined products. Both Iran and many of the countries involved in the conflict are among the world's leading crude oil producers. Two other major producers are Russia, where oil has been subject to international sanctions since President Vladimir Putin ordered the invasion of Ukraine, and Venezuela, where a US military intervention last January resulted in the arrest and extradition of President Nicolás Maduro to the United States.

Falls on parquet floors

As for the stock markets, most European exchanges registered losses throughout the day, although the declines were generally moderate. The Ibex 35, the main indicator of the Spanish stock market, was down nearly 2.5% at 1:30 PM, while Frankfurt's Dax was down 2.27% and, in London, the FTSE-100 was down 1.13%. In Paris, the CAC-40 was down 1.97%, and in Milan, the FTSE MIB was down 1.18%. The American markets have not yet opened, but futures also point to moderate losses of around 1%. In Spain, the companies most affected are IAG, parent company of airlines such as Iberia and British Airways, and the technology company Amadeus, which has a significant part of its business dedicated to flight reservation software. Both multinationals were down nearly 5% at the same time. Conversely, the oil company Repsol and the gas company Naturgy led the gains, with a notable 5.7% increase in the former and a modest 0.53% in the latter.