Finance
Iran crisis risks European power price rise, industry woes, statkraft CEO says
Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: March 5, 2026
Quick Summary
Statkraft’s CEO warns that the ongoing Iran crisis—with halted Qatari LNG output and disrupted Strait of Hormuz shipping—is driving up European gas and power prices, threatening industrial competitiveness—even as winter demand eases thanks to moderate season and storage levels.
Iran Crisis May Raise European Power Prices and Threaten Industry, Statkraft CEO Says
Impact of the Iran Crisis on European Energy and Industry
By Nora Buli
Overview of the Crisis
OSLO, March 5 (Reuters) - A prolonged Iran crisis that has choked off key energy shipments and halted Qatari LNG output is set to push European power prices higher and weaken industrial competitiveness, the CEO of Norwegian utility Statkraft said on Thursday.
Attacks by the United States and Israel on Iran and Tehran's strikes on Gulf Arab neighbours have paralysed shipping through the Strait of Hormuz.
The crisis has forced the shutdown of liquefied natural gas (LNG) production in Qatar, which accounts for 20% of global supply of the super-chilled fuel.
Statkraft CEO's Perspective
While foremost a humanitarian crisis and a geopolitical situation, the conflict has wider ramifications, said Birgitte Ringstad Vartdal, Statkraft CEO said while presenting fourth-quarter earnings.
Potential for Higher Power Prices
"What is happening now can lead to a period of higher prices in Europe," Vartdal said, highlighting that gas-fired plants often set the price of power.
Statkraft is Europe's biggest renewable energy producer, and owns four gas-fired plants in Germany.
Exposure of European Power Markets
The German, French and British power markets are especially exposed to the risk from a 50% spike in gas prices since the start of the conflict on February 28, she added.
Europe's benchmark German front-year power price has jumped around 9% over the same period.
Industrial and Market Implications
Challenges for Industrial Activity
Persisting higher prices would pose a challenge for industrial activity, Vartdal cautioned.
Gas Storage and Hydropower Concerns
Gas Storage Situation
"We are also in a period where gas storage in Europe is low, but at the same time we are thankfully over the worst of the winter, so we are not worried about the physical situation in the coming months," Vartdal said.
Hydrological Balance in Norway
A combination of a weak hydrological balance in southern Norway, stemming from a lack of snow that could eventually feed hydropower production, and any longer-term impact gas market tightness could also impact prices in Norway, she added.
(Reporting by Nora Buli; Editing by Bernadette Baum)
Key Takeaways
- •QatarEnergy suspended LNG production after Iranian attacks, removing about 20% of global LNG supply and triggering a 35%–50% surge in European gas prices. (lemonde.fr)
- •The Strait of Hormuz remains a chokepoint; disruptions there and the Qatar shutdown have amplified volatility in energy markets. (time.com)
- •Statkraft’s CEO emphasized that while the physical supply situation is manageable due to moderate winter demand, prolonged price spikes and low storage—especially in Southern Norway and Europe—could undermine industrial competitiveness and renewables market dynamics. (lemonde.fr)
References
Frequently Asked Questions about Iran crisis risks European power price rise, industry woes, Statkraft CEO says
1How is the Iran crisis affecting European power prices?
The crisis, which halted Qatari LNG shipments, is raising gas prices and could push up European power prices.
2Why are European industries at risk during the Iran crisis?
Persistently higher power prices from disrupted gas supply threaten industrial competitiveness across Europe.
3Which European power markets are most exposed to the crisis?
The German, French, and British power markets are especially exposed due to significant reliance on imported gas.
4What role does Statkraft play in Europe's energy sector?
Statkraft is Europe's largest renewable energy producer and operates gas-fired plants in Germany.
5What additional factors could impact Norwegian power prices?
Low hydrological balance in southern Norway and prolonged gas market tightness could further affect prices.