Energy markets have become increasingly volatile throughout March 2026, driven by escalating tensions in the Middle East. Concerns over LNG supply routes, particularly the Strait of Hormuz, have created uncertainty, influencing European gas and electricity prices.
Week of 2nd March 2026
Oil prices rose following tanker attacks near the Strait of Hormuz, driven mainly by uncertainty rather than supply loss. European gas and electricity markets reacted with increased volatility, as risks to Qatari LNG exports raised concerns over potential short-term price increases.
Week of 9th March 2026
Gas prices climbed as the Middle East conflict continued, disrupting LNG flows and increasing uncertainty. While EU supply remained stable and US LNG offered support, risks around Qatari exports and storage levels kept prices elevated and markets unpredictable.
Week of 16th March 2026
Prices increased further as the conflict entered its third week, with growing concerns over LNG competition and storage refilling. While supply remained steady, risks to Qatari output and rising demand reinforced pressure, keeping markets volatile and increasingly sensitive to developments.
Week of 23rd March 2026
Markets strengthened following further escalation, including damage to Qatari LNG infrastructure. The situation shifted toward a prolonged disruption scenario, with sustained higher prices expected. Risk adverse buyers were encouraged to consider medium-term contracts while maintaining flexibility amid ongoing uncertainty.
Conclusion
March saw markets move from short-term disruption to a more sustained supply risk. While severe long-term damage has not occurred, continued geopolitical tension is keeping prices elevated, highlighting the importance of balancing cost certainty with flexibility in energy procurement strategies.
For further insights and information on the dynamic landscape of the 2026 energy market, feel free to contact us:
01738474630
theteam@herestheplan.co.uk
