Middle East Conflict Drives Up Swedish Electricity Prices Amid Market Turmoil

The ongoing conflict in Iran has triggered a surge in oil and gas prices, significantly impacting Sweden's electricity market and raising concerns about industrial recovery. Since the onset of the Iran war, gas prices have doubled largely due to the effective closure of the strategic Hormuz Strait, through which about 20% of global gas supplies transit. This disruption has led to market expectations of a roughly 10% increase in electricity prices for Sweden in the second quarter, compared to forecasts made before the conflict escalated, according to Christian Holtz from consulting firm Merlin & Metis.

On March 10, 2026, oil prices surpassed the $100 per barrel mark, fueling further market instability. Bas Kooijman of DHF Capital emphasized the magnitude of these price movements and their broader economic effects. Beyond energy, precious metals markets were also influenced, with Dubai playing a key role as a global hub.

Furthermore, Jakob Tellgren, CEO of the industry organization IKEM, highlighted a specific supply risk for Sweden’s economic recovery: the availability and pricing of sulfuric acid, a critical industrial input closely linked to oil and gas prices. Tellgren warned that the high energy costs could challenge Sweden’s industrial sector that relies on such inputs.

The developments underline the far-reaching consequences of Middle Eastern conflicts on Sweden’s energy costs and industrial stability, with experts anticipating continued volatility and price pressures in the near term.