The war in the Middle East is affecting the financial markets in many ways. One is that the price of gas has risen by about 50 percent since last Friday, a rise that accelerated sharply on Monday after Qatar, among others, announced that it was closing the world's largest gas export facility due to an Iranian drone attack.
During a press conference on Monday, Minister of Economic Affairs Ebba Busch (KD) commented on the situation in the Swedish electricity market.
We are prepared. But at the moment it is difficult to say what concrete impact this will have on Swedish electricity prices in the long term.
Gas accounts for a large part of European electricity production. When electricity prices rise in places like Germany, it tends to affect electricity prices in southern Sweden because the electricity markets are interconnected.
In the market where players trade future electricity deliveries for the second and third quarters, prices are up 7 to 8 percent in the Nordic market.
A closure of the sensitive Strait of Hormuz, connected to Iran, would affect the gas market more than oil prices, Arne Lohmann Rasmussen, chief analyst at Global Risk Management, told Bloomberg.
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