Iran closes Strait of Hormuz Gas prices in Europe exceed $700

Conflict has spread across the Middle East after Israel and the United States jointly attacked Iran. The Islamic Republic of Iran's Revolutionary Guard Corps (IRGC) has closed the Strait of Hormuz, known as the world's energy corridor. This is causing fuel prices to rise sharply; gas prices in the European market have reportedly increased by 30 percent.

According to London ICE data, gas prices on European exchanges have exceeded $700 per 1,000 cubic meters for the first time since January 2023 after the IRGC's statement on the blockade of the Strait of Hormuz was published.

As of 7 am local time on Tuesday (March 3), the index rose 0.45 percent to 2,848.3 points as trading began on the Moscow Exchange.

Gas

According to London ICE data, gas prices on European exchanges have exceeded $700 per 1,000 cubic meters for the first time since January 2023. The price of the April contract on the TTF Hub in the Netherlands has reached about $711 per 1,000 cubic meters. The price increase since the beginning of the day has exceeded 30 percent.

Oil

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), believes that natural gas prices could double and oil prices could exceed $100 per barrel.

Stanislav Kleshchev, investment strategist at VTB, said that the rise in shares of Russian oil and gas companies was the main reason for the Moscow index to rise above the 2,800-point barrier.

Precious metals

According to trading data, the price of silver futures contracts for delivery in May 2026 on the Comex exchange fell by more than 6 percent. Silver prices fell 6.58 percent to $83.005 per troy ounce at 9:30 a.m. Moscow time.

Meanwhile, the price of gold futures for April 2026 rose 0.08 percent to $5,316 per troy ounce. Alfa Bank analyst Boris Krasnozhenov said that geopolitical tensions in the Middle East could push gold prices to historic highs and it could possibly reach $6,000 per troy ounce.

Impact on the Russian economy

The Russian stock market rose as trading began on Tuesday (March 3). US political analyst John Kavulich said that the US-Israeli attacks on Iran could temporarily boost the revenues of several exporting countries, including Russia, as raw material prices rise in the global market.

According to Kavulich, Russia will be the “most visible beneficiary” of this situation.

Implementa Research Director Maria Belova said that the revenue of Russian LNG exporters will increase due to the problems with the transportation of Qatari liquefied natural gas, or LNG, through the Strait of Hormuz.

Impact on the global economy

According to a Bloomberg report, the European Union will face a new economic crisis if the conflict in the Middle East lasts more than four weeks. According to ING’s Carsten Brzeski, the EU is most vulnerable to the complications of a war with Iran due to its dependence on the region’s oil and gas.

European Central Bank Chief Economist Philipp Lehn said that a prolonged military conflict and a decrease in energy supplies could lead to a sharp increase in inflation in the eurozone and a sharp decline in production.

Sergey Kaufman, an analyst at Finam Financial Group, said that the EU may reconsider its sanctions on Russian LNG if supplies from Qatar are cut off for a long time.

Source: Tas.