The Strait of Consequences: How Global Tensions Could Shock Energy Markets

Susanne Sweetman

At EnergyBroker.ie, we help Irish businesses stay ahead of energy risks. This week, global markets are on edge following a major geopolitical event that could disrupt supply and drive prices higher.

On Saturday, the U.S. launched airstrikes on Iranian nuclear facilities. In response, Iran fired missiles at Israel and its Parliament voted to close the Strait of Hormuz—a vital corridor for 25% of global oil and 20% of LNG exports. If closed, energy prices could spike globally, hitting Irish businesses hard.

Key Market Impacts

  • Brent crude surged to $78/barrel, a five-month high.

  • Gas and oil prices opened significantly higher on Monday.

  • The EU and U.S. urge diplomacy, but Iran has pulled out of peace talks.

This chokepoint disruption, combined with existing market pressures, is creating a perfect storm.

Other Global Factors

  • The U.S.–China trade war continues to cloud demand forecasts.

  • The EU’s 90% gas storage target for November may be relaxed amid rising costs.

  • In Norway, unplanned outages at key gas fields (Troll, Aasta Hansteen) are slashing supply, leading to record-low storage injections.

What This Means for Irish Businesses

Short-Term:

Expect continued price volatility driven by global conflict and supply constraints.

Long-Term:

As the EU pivots from Russian gas, LNG supply and storage capacity will be critical for Ireland’s energy security.

Take Action

With global energy markets at a tipping point, Irish businesses must be proactive. At EnergyBroker.ie, we provide expert procurement advice, contract support, and risk management.

Act now to lock in the best prices for your business.

Contact us today at info@energybroker.ie or visit www.energybroker.ie.