Conflict in the Middle East: Effects on the Dutch Economy

Middle East Conflict Triggers Surge in Energy Costs

The ongoing conflict in the Middle East has caused a significant spike in oil and gas prices. As of March 19, oil prices had soared above USD 100 per barrel, while gas prices exceeded EUR 60 per megawatt hour. Compared to the end of February, this marks an increase of approximately 45% for oil and a doubling of gas prices.

For context, after Russia invaded Ukraine in 2022, oil prices climbed by about 30%, reaching over USD 120 per barrel, and gas prices skyrocketed by more than 250%, peaking at over EUR 300 per megawatt hour. The recent escalation in energy costs is largely attributed to supply chain disruptions affecting oil and gas.