Middle East conflict: implications for European power markets

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.