Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleStatkraft’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.
By Nora Buli
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.
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.
"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.
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.
Persisting higher prices would pose a challenge for industrial activity, Vartdal cautioned.
"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.
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)
The crisis, which halted Qatari LNG shipments, is raising gas prices and could push up European power prices.
Persistently higher power prices from disrupted gas supply threaten industrial competitiveness across Europe.
The German, French, and British power markets are especially exposed due to significant reliance on imported gas.
Statkraft is Europe's largest renewable energy producer and operates gas-fired plants in Germany.
Low hydrological balance in southern Norway and prolonged gas market tightness could further affect prices.
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