Escalating Middle East conflict threatens European energy stability

The European Central Bank has warned that the ongoing conflict in the Middle East, specifically between Houthi rebels and Saudi Arabia, is driving up energy costs across Europe. Damage to a critical Saudi oil pipeline following the closure of the Strait of Hormuz has caused significant market volatility. Brent crude prices surged toward $110 per barrel before settling near $102, while European natural gas (TTF) prices climbed above 80 euros per megawatt-hour, settling near 77 euros. These figures represent increases of 70% and 180% respectively compared to early 2026.

European Commission President Ursula von der Leyen noted that since the conflict began in late February, the European Union has paid an additional 90 billion euros for the same volume of imported fossil fuels. This geopolitical instability poses a persistent threat to supply chains and long-term price stability. Analysts and the European Central Bank continue to monitor the situation closely, as fears of a broader disruption in oil exports remain a primary concern for the eurozone's economic growth.