Oil and gas prices climb as Middle East tensions disrupt markets

Oil and gas prices in Europe have risen sharply since the United States and Israel began attacks on Iran, ORF reports. Natural gas has reached a record price, after trading at $70 at the start of the month, and its price has tripled since the beginning of the year.

The conflict is adding to uncertainty in energy markets. Attacks by Houthi rebels in Yemen threaten key routes for energy shipments, said Josef Baumgartner, an economist at the Austrian Institute of Economic Research. He said the passage through the Bab al-Mandab Strait into the Red Sea was particularly critical because it is an important oil transport route.

Energy expert Walter Boltz said further attacks on Iran could follow Israel’s elections, potentially prompting retaliation. Households should expect gas and electricity tariffs to rise in the coming months, the experts said.

They advised consumers to cut energy use, for example by carpooling or driving less. Over the medium term, heat pumps and electric cars could help reduce costs, they said. Price forecasts remain uncertain, and households may want to consider signing energy contracts at favourable rates while they are available.