The Iran War and Europe's Energy Crisis

Iran war causing European energy crisis March 2026

When the United States and Israel launched military strikes against Iran on February 28, 2026, the effects were felt almost immediately across Europe — not through bombs or soldiers, but through rising energy prices. Iran's decision to restrict traffic through the Strait of Hormuz, the narrow waterway through which a fifth of the world's oil flows, sent shockwaves through global commodity markets.

Within a month, European gas prices had jumped 70 percent. The benchmark natural gas price in Europe — known as TTF — climbed from €38 to €54 per megawatt-hour.

Goldman Sachs, one of the world's largest investment banks, warned that prices could reach €72 by the second quarter of 2026, and possibly as high as €155 in the worst-case scenario. Europe's gas storage situation is already alarming.

The continent as a whole has storage at just 28% capacity — well below normal levels for this time of year. The Netherlands is in the most dangerous position, with storage at just 6%.

Germany and France are both at around 22%. To put this in perspective: Europe needs to fill its gas storage during spring and summer so that there is enough energy to heat homes and power factories through the cold winter months.

If storage remains this low, next winter could be very difficult indeed.