Amidst the war in the Middle East and its consequent impact on the global gas and oil market, many countries have entered into a long-distance race to find who can guarantee them the supply of these fossil fuels, or ensure that the link with their main suppliers is robust. This is the case of Spain, which has just announced the "reinforcement" of the energy partnership with Algeria, on which the supply of natural gas to the State depends because it is its main source. For example, between January and December 2025, 34.5% of the natural gas that arrived in Spain (128,504 GWh) came from the African country, while this year Algerian gas already accounts for 29.2% of this fossil fuel (19,243 GWh). In fact, this reinforcement will translate into nothing more and nothing less than an "expansion" of the gas volumes arriving in the State from Algeria. The same happened in 2022, when the war in Ukraine and the consequent decisions of the West regarding its ties with Moscow, including starting to detach from Russian gas in the long term, increased the capacity of the pipeline connecting Spain with the Algerian country: from 8,000 million cubic meters to 10,000 million.

Politics shouldn't be all about pronouncements and grand gestures. Pragmatism is also essential. In short, it's about being practical so that citizens, those governed, feel they aren't being abandoned when times get tough. And this seems to be the path the Spanish government has taken with the package of measures designed to mitigate the effects of the war in the Middle East. The conflict, whose end appears far off, has driven up gas and oil prices and, consequently, the prices of everything related to them, such as fuel and electricity. That's why the measures announced by Pedro Sánchez will amount to around 5 billion euros, far less than the more than 20 billion mobilized in 2022 following the invasion of Ukraine—but we are still in the early stages and don't know how long the war might last. The first decree focuses on reducing energy taxes, one of the services most affected by the impact of the Middle East crisis, and one that could have ripple effects throughout the economy. In addition to lowering the VAT on electricity and gas from the current 21% to 10%, as well as on biomass raw materials such as pellets and firewood, the energy production tax, currently at 7%, is temporarily eliminated and reduced from 5.5% to a special rate of 0.5%. Maximum retail prices for butane and propane are also frozen. The VAT on gasoline and diesel is also reduced, which, according to the Prime Minister's office, will result in a savings of approximately 30 cents per liter when filling up. Consumer organizations estimate that the reduction will be around 17 cents for diesel, which has seen the largest price increase. A key point, also included in the decree, is granting the National Commission for Markets and Competition (CNMC) new supervisory and sanctioning powers to prevent operators from exploiting the tax cut to increase their profit margins and enrich themselves. This is essential to prevent the tax reduction from benefiting certain companies more than citizens and, therefore, taxpayers.

The price war at gas stations has erupted. At least temporarily, and with greater savings the more contracts and service agreements signed with the companies. This comes after fuel prices soared the day after the outbreak of war in the Middle East and the surge in oil prices, which reinforced the situation. from the control of abuses by the National Commission for Markets and Competition (CNMC)The major companies have entered into a price war ahead of Easter. In any case, the biggest discounts are obtained if other services related to electricity or gas are contracted.

"Since Saturday, I've had the feeling that we're in a déjà vuThe reflection was made by the Director-General for Energy of the European Commission, Mechthild Wörsdörfer, during a speech at the Biomethane Connect Europe congress held this week in Madrid. Iran and its ramifications in the Persian Gulf – also causing the blockade of the Strait of Hormuz – have once again raised alarms regarding gas and oil supplies, directly affecting families and businesses. "We return to the situation in Iran, where the price of gas has climbed by 50% – the Dutch TTF is approaching 50 euros/MWh – while the price of Brent crude, the benchmark for Europe, has risen by more than 30%, reaching around 90 dollars (On Friday it already exceeded $90 at timesFour years ago, the cost skyrocketed even further: gas reached its all-time high – €345/MWh – while crude oil surpassed $120 a barrel. The difference is clear – although what might happen in the Middle East is still uncertain – and that's why some voices in the energy sector point out that the current scenario is not the same. They also recall that dependence on Russia was much greater. In fact, in the case of Spain, the ships that supplied gas to the country in 2025 and that had passed through the Strait of Hormuz because they came from the now conflict zone (specifically, from Qatar) accounted for only 1.7% of imported gas. But the situation is also different because Europe and its member states are in a "better position than when the war broke out in Ukraine," stated the European Director of Energy. The reason is the lessons learned then, which led to new energy policies. Therefore, despite constant monitoring by the European Commission, supply is currently "guaranteed," Wörsdörfer stated. Specifically, the European plan known as [name of plan] emerged from the crisis four years ago. Repower UE and whose central aim was to gradually phase out fossil fuels of Russian origin (oil and gas) and diversify sourcesFor example, in 2022, Russian natural gas imported into Europe via pipeline accounted for 40% of total fuel consumption, but by 2025 this figure had fallen to 6%, according to European Commission estimates. During this period, imports of liquefied natural gas (LNG) from the United States have tripled, making it the second-largest supplier after Norway. Spain has also risen to second place in the LNG market. Across the continent, Algeria, the United Kingdom, and Azerbaijan have also joined the list of major LNG importers.

The price of Brent crude, the European benchmark, climbed more than 8% on Friday to between $91 and $93 a barrel, continuing its upward trend. This represents a price increase of over 30% since last Friday, before the start of the US and Israeli attacks on Iran. This conflict, which began last Saturday and has spread throughout the Middle East, could force all oil and gas exporters in the Persian Gulf to suspend production within days. This scenario would cause the price of a barrel to soar to $150, according to Qatari Energy Minister Saad al-Kaabi. Financial TimesIn this interview, he warns that even if the conflict initiated by the US and Israel with the attack on Iran were to end immediately, it would take Qatar "weeks or months" to return to a normal delivery cycle, following the attacks on its liquefied natural gas (LNG) plants. Qatar Energy announced on Wednesday that the halt in LNG and associated product production is due to "force majeure," referring to the Iranian drone attacks on facilities in the industrial cities of Ras Laffan and Mesaieed. So far, the surge in oil prices has impacted gasoline and diesel prices, as well as electricity. International analysts predict that the price of a barrel of oil could rise to between $100 and $120 if access to the Strait of Hormuz, through which a fifth of the world's oil and LNG passes, is restricted for four or five weeks. "If the strait remains blocked, there is no reliable source of quick replacement oil supply, leaving the market exposed to a significant deficit," warns Malcolm Melville, energy fund manager at Schroders.

On Monday the blow seemed less severe, although the trading session ended with losses, but this Tuesday the stock markets plummeted. The Ibex 35, the main benchmark of the Spanish stock market, fell 4.55% despite holding above the 17,000-point level, after reaching record highs well above 18,000. The only stock to gain ground was Repsol, with an advance of over 3%. The rest of the Ibex stocks accumulated declines; Acciona (-11.77%), Solaria (-10.46%), and Acerinox (-9.46%) were the hardest hit. The messages coming from the White House regarding the conflict with Iran, far from calming the situation, have made investors more nervous, who anticipate a longer conflict than expected.

The General Court of the European Union on Wednesday upheld the inclusion of aid for energy sources such as nuclear and gas in the sustainable investment scheme, based on the European Union's taxonomy regulation, which seeks to direct these flows toward energy decarbonization.

The European Union has long included in its energy roadmap an increase interconnections between different states. For Brussels, this is the only way to create a single market, since without exchanges –or the very meagre existing ones– each of the markets operates in isolation. In fact, it is this lack of interconnections that allows Spain and Portugal to limit the price of gas, since the EU authorities have accepted the so-called Iberian exception and consider the Iberian Peninsula to be an energy island.

Spain and Italy are the only two countries in the European Union that have a gas pipeline connecting them to Algeria, but at a time when Russia is reducing its gas shipments, these two European countries have started to look at each other. Specifically, the Port of Barcelona and the cities of Livorno, Panigaglia and Porto Levante, near Venice, and the liquefied natural gas (LNG) regasification plants that the four locations have.

The Minister for the Ecological Transition, Teresa Ribera, has recalled there may be "exceptions" to temperature limits for air conditioning at work. In fact, this is what Ribera said on the day the Spanish government presented the plan to save energy: "You can incorporate flexibility depending on the working conditions workers need," Ribera said at a press conference after the council of ministers. In an interview with Onda Cero, Ribera gave as an example that bars and restaurants could set their air conditioning at "around 25 degrees", and not 27 degrees as the plan establishes.

Spanish foreign policy has a problem of scale. Not with its neighbours, which lately also seems to be the case, but of the scale in which the Kingdom of Spain sees itself in relation to the world around it and, therefore, the arrogance with which it makes mistakes.

If everything goes according to the Spanish government's forecasts, as of Wednesday, May 4, consumers who have contracted a regulated electricity tariff, also known as PVPC (voluntary price for small consumers), will see a reduction in their bill of around 30%. This has been anticipated by the Minister of Ecological Transition, Teresa Ribera, on Wednesday. The Spanish government intends to approve the measure next week, limiting the price of gas to around 50 euros for 12 months, which received the go-ahead from Brussels yesterday. The goal is for the measure to come into force as soon as possible, in all likelihood next week.

Spain and Portugal have already agreed on the cap for gas-fired power plants (pending the European Commission's approval) in order to lower the electricity bill: €30 per MWh, according to Portuguese newspaper Público. This number was later confirmed by the Spanish Minister for Ecological Transition Teresa Ribera, in declarations to the media from Galicia. These days the two governments have been negotiating the figure, which has to be approved by Brussels, and which is part of the proposals that the Commission will allow the two countries to roll out after their "Iberian uniqueness" was recognised. However, this measure would be "exceptional" and "temporary", the two governments have reiterated, in order to bring down high electricity prices.

A Castellón court will hear from this Monday at 10 am the trial of what is known as the Castor case, in which two Escal UGS managers stand accused of being responsible for over 500 earthquakes caused by the injection of gas in an offshore platform, since closed. According to sources from Valencia's High Court, throughout the eleven sessions planned for the process the court will hear the two defendants, former president of Escal UGS Recaredo del Potro, and former CEO Martínez Dalmau, as well as 189 witnesses, 6 expert witnesses and 35 experts. The sessions will begin with the two defendants' statements.

Since ancient times, several civilizations have understood the arrival of cold weather as a time of the year when it was necessary to be prepared. There are examples of this even in the Neolithic, when the first sedentary people accumulated the summer harvest to try to have reserves during the time of the big frosts. In the global energy industry, every year we experience similar behaviour: governments and large companies around the world try to ensure that the onset of the cold weather catches them with sufficiently full tanks so that they do not have to suffer during the winter months. But this year, the year of the beginning of the economic recovery after the covid-19 shake-up, the forecasts are not very good. And there is a key factor: gas. For weeks now, experts have been warning that this winter there could be a natural gas shortage crisis in several parts of the world that could have major economic, political and social consequences. And one of the regions of greatest concern is Europe, where reserves are at remarkably low levels despite the fact that, on the continent, natural gas is used to generate around a fifth of electricity.

"Between now and the end of the year we will propose a reform of the gas market and we will review problems surrounding storage and security of supply". These are the words of the Commissioner for Energy, Kadri Simson, this Wednesday in the plenary session of the European Parliament, which debated the escalation of electricity prices across Europe. The President herself, Ursula von der Leyen, admitted that the root of the problem was the heavy dependence on Russian gas. And she reiterated that there is a gas storage problem, a debate that had been brought up by Spanish president Pedro Sánchez. In the framework of the European summit with the Western Balkans, the Socialist leader has again called for a reform of the electricity market and a joint gas purchase to address the rising cost of electricity.