Analysts at Goldman Sachs predict that European natural gas prices could more than double if shipping through the Strait of Hormuz is halted for a month.
Analysts at the bank said gasoline prices in Europe and Asia did not adequately factor in risks related to Iran.
The bank explained that suspending shipments for a month could cause gas prices in Europe to rise and spot liquefied natural gas prices in Asia to rise by up to 130%, reaching around $25 per million British thermal units.
Decrease in demand
He noted that if the disruption lasted for more than two months, gas prices in Europe could rise by more than 100 euros per megawatt hour (equivalent to about $35 per million British thermal units), a level that could lead to a significant reduction in global gas demand due to higher prices.
For the United States, Goldman Sachs expects the impact to be limited.
Analysts at Goldman Sachs predict that natural gas prices in Europe could more than double if shipping through the Strait of Hormuz is halted for a month.
Analysts at the bank said gas prices in Europe and Asia do not adequately factor in risks related to Iran.
The bank said a one-month suspension of shipments could cause gas prices in Europe and spot liquefied natural gas prices in Asia to rise by up to 130%, reaching around $25 per million British thermal units.
Decrease in demand
If the disruption lasts for more than two months, gas prices in Europe could exceed 100 euros per megawatt hour, equivalent to about $35 per million British thermal units, a level that could lead to a significant reduction in global gas demand due to higher prices, it said.
For the United States, Goldman Sachs expects the impact to be limited.
