The barrel of crude oil exceeded 100 dollars both in Europe and in the United States last Sunday, driven by the supply disruption after the war in the Middle East. The impact has been immediately felt in the energy and stock markets, with direct consequences for consumers and businesses in Catalonia and the rest of Spain.
Fall in the markets and international reaction
The Ibex 35 fell by 3% in the first part of the session and closed with a decrease of 0.86%. The Madrid Stock Exchange has accumulated an 8% fall since the war broke out in the Middle East more than a week ago. Other European indices also registered declines, with Frankfurt's Dax falling 0.57%, Paris 0.98%, London 0.20% and Milan 0.25%.
The G7 Energy ministers, which groups the United States, Canada, Japan, France, Italy, Germany, and the United Kingdom, will meet virtually today to address the supply disruption caused by the war in Iran and discuss the possible use of oil reserves. Yesterday, the G7 Finance ministers held a virtual meeting and showed their willingness to take measures, including the release of strategic crude reserves, although they did not reach a definitive agreement.
"We leave open the option of releasing national oil reserves. It is not the right time for that yet, but we are open, including Germany, to initiating a coordinated procedure at the right time" - Lars Klingbeil, German Finance Minister
Oil and gas, at highs of volatility
Texas Intermediate crude (WTI) fell 6.7% to $84.11, while Brent crude closed with a 10% drop to $87.80, although during the session it surpassed $100 for the first time since the Russian invasion of Ukraine in 2022. The Strait of Hormuz, through which a fifth of the world's crude oil transits, is virtually closed due to threats from the Iranian Revolutionary Guard.
Since the United States and Israel declared the conflict more than a week ago, Brent has risen more than 48%. According to the consultancy Rapidan Energy, the threat of a total closure of the Strait of Hormuz has caused the most significant disruption to crude oil supply in history.
The TTF index, a benchmark for the European gas market, has almost doubled since the start of the attacks and has exceeded 60 euros per megawatt hour (MWh). The Iberian Gas Market (Mibgas), a benchmark in Spain, was trading yesterday at around 51 euros per MWh.
The price of electricity reaches highs in Spain
The wholesale electricity market marked a daily average price of 136.86 euros per MWh, the highest in more than a year according to the Iberian Energy Market Operator (OMIE). The last highest daily average price was on February 17, 2025, with 138.17 euros per MWh.
Today, the electricity market will reach highs of 250 euros per MWh between 21.00 and 23.00 hours and lows of 94.91 euros per MWh between 14.00 and 15.00 hours. The increases in the wholesale electricity market quickly affect about eight million households in Spain with regulated tariffs.
More than 20 million customers with free market rates maintain stable prices for one year, although they notice the increases when they review their annual contract.