European natural gas and electricity prices have climbed to their highest levels since 2023, driven by escalating tensions in the Iran conflict.
The geopolitical instability is exacerbating existing supply vulnerabilities, creating a squeeze on the continent's energy markets.
The surge follows an announcement by Houthi rebels declaring a blockade, which has intensified fears of disruption in key shipping routes.
This development adds to the pressure on European energy supplies, which are already strained by low reserves.
Multiple wire services are reporting that the combination of geopolitical risk and tight inventory levels is driving the repricing.
The situation highlights the sensitivity of European energy markets to external shocks, particularly in the context of ongoing conflicts in the Middle East.