Europe faces significant energy supply risks from the Iran war. While less dependent on Hormuz oil than Asia, Europe relies on LNG imports that transit through affected shipping lanes. Energy prices spiking across the EU. European natural gas futures surged 15%. ECB warning of stagflation risks. Industrial output in Germany and Italy threatened by energy cost increases.
Europe faces rising energy costs as natural gas and LNG supply routes are disrupted. European gas futures jumped 15%. The ECB warns of potential stagflation if the crisis extends beyond 3 months.
Europe has better reserves than during the 2022 Russia-Ukraine crisis but faces price shocks. Strategic gas reserves are at 65% capacity. If LNG rerouting persists, prices could match 2022 highs.
Germany (industrial energy dependency), Italy (LNG imports), and Spain (refinery capacity) face the highest impact. UK is partially insulated by North Sea production.
Analysis based on data from the U.S. Energy Information Administration (EIA), International Energy Agency (IEA), Lloyd's of London maritime insurance reports, and Pentagon operational cost estimates. Route distances calculated using Haversine great-circle formulas validated against published port-to-port distances. Updated 2026-03-08.