The war in the Middle East is affecting the financial markets in many ways. One effect is that the price of gas has risen by about 25 percent since last Friday.
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.
Gas stocks in Europe are low after the winter. They need to be replenished now and in the months ahead for the coming winter.
A closure of the sensitive Strait of Hormuz, which is connected to Iran, would affect the gas market more than the price of oil, Arne Lohmann Rasmussen, chief analyst at Global Risk Management, told Bloomberg.
