Gas is 'about life'

"Among the energy resources blocked from leaving the Strait of Hormuz, gas matters even more than oil," Qin Yan, a principal analyst at Norway-based ClearBlue Markets, told China Daily, noting that gas accounts for a larger share of Europe's energy mix and that the continent relies heavily on imports.

According to the European Commission, Europe's energy mix consists of approximately 38 percent crude oil and petroleum products, 21 percent natural gas, 20 percent renewable energy, 12 percent nuclear energy, and about 9 percent solid fuels.

While the structure appears balanced, a closer look reveals vulnerabilities. "Europe's energy system is relatively diversified, with a growing share of renewables, but it still relies significantly on imported fossil fuels, particularly oil and gas linked to global trade flows," said Isaac Levi, team lead of Europe-Russia Policy and Energy Analysis at the Center for Research on Energy and Clean Air.

"The EU is incredibly reliant on imported fossil fuels, leaving it very vulnerable to price spikes and energy security risks."

Before the Ukraine crisis in 2022, pipelines transported large volumes of relatively cheap gas from Russia to Europe, with the Nord Stream pipelines among the most important. Since then, and with advances in LNG technology, Europe has turned to suppliers in the Middle East and the US, with Qatar, located in the Persian Gulf, becoming one of its key sources. Those LNG shipments cannot reach Europe under current conditions.

To make things worse, an Iranian missile strike on March 18, which was in retaliation for earlier Israeli attacks on Iran's gas infrastructure, had hit several LNG facilities in Qatar according to QatarEnergy, wiping out 17 percent of Qatar's LNG export capacity. US oil major ExxonMobil is a partner in the damaged LNG facilities. European natural gas futures surged by 27 percent that day on fears of prolonged supply disruptions.

"Gas has a huge impact on prices since most electricity markets use marginal pricing, meaning gas often sets the final price," said Angel Saz-Carranza, director of Esade Center for Global Economy and Geopolitics in Spain. "This transmits volatility in gas prices directly into electricity prices."

Jian Junbo, a researcher at the Institute of International Studies at Fudan University, echoed this view, noting that while both oil and natural gas are fuels, oil is more often used as an industrial feedstock, whereas natural gas is mainly used for power generation, meaning its impact on daily life is felt more quickly.

Qin, of ClearBlue Markets, added: "That's only the beginning of Europe's problem — while oil can be sourced from alternatives such as Venezuela, LNG options are far more limited, especially given fierce competition with Asian buyers. If oil is about money, then LNG is about life."

On March 20, QatarEnergy's CEO said the March 18 attacks had wiped out 17 percent of the country's LNG capacity for up to five years, warning that the disruption would not be resolved quickly.

"This chain of events has sparked fears of further escalation in a conflict that, in less than three weeks, has rocked global energy markets and sent gas and oil prices soaring," French newspaper Le Monde reported.