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Middle East conflict: implications for European power markets
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Report summary
Europe’s power markets will remain volatile for as long as the gas supply disruption persists. The loss of LNG flows through the Strait of Hormuz tightens a market already constrained, and price spikes will continue to pass through into European power. The crisis re-elevates energy security as a strategic priority. It strengthens the long-term case for renewables, nuclear, grid reinforcement and storage, and exposes the limits of Europe’s flexibility in switching away from gas in the short term.
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