Energy bills could hit 2,500 as Iran conflict threatens global gas supplies

"Analysts warned that annual bills could rise to around £2,500 if global gas markets face prolonged instability, undoing recent relief for consumers and reviving memories of the energy shock that followed Russia's invasion of Ukraine."

"Qatar is the world's second-largest LNG exporter after the United States and, along with the United Arab Emirates, accounts for roughly a fifth of global LNG supply. Much of that gas passes through the Strait of Hormuz, a narrow but critical shipping channel connecting the Gulf to global markets."

"Shipping through the strait has largely stalled after Iran reportedly attacked tankers in retaliation for US and Israeli strikes that killed Ayatollah Ali Khamenei, Iran's supreme leader. The strait is a vital chokepoint not only for LNG but also for oil, and any sustained closure risks triggering a broader energy supply crisis."

Military escalation involving Iran, Israel, and the United States has disrupted Middle Eastern gas supplies, causing wholesale prices to surge. Britain's benchmark gas price jumped 54 percent following Qatar's halted LNG production after attacks on its facilities. Qatar, the world's second-largest LNG exporter, accounts for roughly one-fifth of global supply. Shipping through the Strait of Hormuz has largely stalled after reported Iranian attacks on tankers in retaliation for US and Israeli strikes. Sustained closure risks triggering a broader energy crisis. Although most Qatari LNG heads to Asia, disruption intensifies global competition for alternative supplies, driving up European and UK prices. Analysts warn annual bills could reach £2,500 if instability continues, undoing recent consumer relief.

Read at Business Matters