Iran War Could Increase Spanish Industry Energy Costs by $8.5 Billion in 2024
Impact of Rising Energy Prices on Spanish Manufacturers
Projected Cost Increases Due to Iran War
Sept 16 (Reuters) - Higher energy prices resulting from the Iran war could add nearly €7.4 billion ($8.5 billion) to Spanish manufacturers' costs through the end of 2026, an industry lobby group said on Wednesday.
Breakdown of Additional Energy Costs
• Of the extra costs stemming from current prices, gas would account for €4.2 billion and electricity for €3.2 billion, with 70% of the impact expected between September and December, the Alliance for the Competitiveness of Spanish Industry said in a statement.
Industry Response and Calls for Government Action
• The group, which represents 60% of Spain's gross industrial product, urged authorities to maintain existing support and introduce stronger measures to protect production, investment and jobs, warning that many current measures expire in the final months of the year.
Statements from Industry Representatives
• Alliance spokesperson Carlos Reinoso said the crisis had intensified existing competitiveness problems and warned that manufacturers could not absorb the additional energy costs alone.
Energy Market Trends and Contributing Factors
Electricity and Gas Price Surges
• Day-ahead electricity prices have averaged nearly €150 per megawatt-hour so far in September, up sharply from €61 in September 2025, while gas prices have exceeded €80 per megawatt-hour.
Oil Price Increases and Geopolitical Disruptions
• Oil prices have risen above $100 a barrel following recent Houthi attacks on Saudi energy infrastructure while shipping through the Strait of Hormuz — a key artery for oil exports from the Middle East — remains heavily disrupted.
(Reporting by Benjamín Mejías Valencia. Editing by Andrei Khalip and Mark Potter)
