On the fifth day of the war in Iran, Tehran's blockade of the Strait of Hormuz has driven up oil and gas prices, affecting the global economy. European gas prices rose from 32 to 49 euros per MWh, while Brent crude climbed from 72 to 82 dollars per barrel. Europe, vulnerable due to its reliance on imports, faces heightened risks if the conflict drags on.
The war in Iran, triggered on February 28, 2026, by US and Israeli strikes that killed Ayatollah Ali Khamenei, enters its fifth day on March 4. The Strait of Hormuz, through which one-fifth of global oil and liquefied natural gas passes, is closed and under the «total control» of the Iranian navy, according to the Revolutionary Guards. This has caused an immediate economic shock wave.
Energy prices have surged: European gas prices rose from 32 euros per MWh on Friday to 49 euros on Wednesday, a more than 30% increase in one day. The Brent crude barrel climbed from 72 to 82 dollars, with rises of 6 to 7% in London and New York. Though downplayed by Brussels, which foresees no «immediate concerns» for EU supplies, and by French Economy Minister Roland Lescure, who assures «no short-term risk» in France, European stocks are low.
Vladimir Putin has threatened to halt Russian gas exports to Europe «immediately» to pivot to more promising «emerging markets.» «New markets are opening today. It might be more profitable for us to interrupt our deliveries to the European market right now,» the Russian president stated on state television. Russia claims to remain a reliable supplier to partners like Slovakia and Hungary.
Air traffic is suspended in the Middle East, canceling thousands of flights and stranding travelers, while tourism halts. Stock markets are volatile, and an inflationary shock threatens global growth if the stalemate continues, given the Gulf countries' economic weight.
