Gas Prices in Europe Surge 39 Percent in a Month, July Closes at $709
Geopolitical tensions in the Middle East are once again driving up energy prices, with the increase directly impacting Croatia's energy system.
Geopolitical tensions in the Middle East are once again driving up energy prices, with the increase directly impacting Croatia's energy system.
Europe's gas market saw a sharp rise in prices in July, fueled by renewed tensions in the Middle East and fears of potential supply disruptions. On the last day of the month, futures contracts closed at approximately $709 per thousand cubic meters, as reported by Narodno.hr.
For comparison, at the end of June, the same amount of gas was worth around $510, representing a jump of about 39 percent in just one month. According to ICE exchange data, the average price during July stood at around $637 per thousand cubic meters, which is 19 percent higher than in June.
This sudden price surge clearly demonstrates how sensitive the European energy market remains to geopolitical conflicts. Although EU member states have largely redirected their supply routes and increased LNG imports since the outbreak of the conflict in Ukraine, sensitivity to global disruptions persists.
Tensions in the Middle East do not necessarily have to halt gas supplies to Europe directly to drive prices up. It is enough for traders to assess that shipping routes, energy production, or supplies to major Asian buyers could be threatened. Under such conditions, demand for available reserves rises, and the market immediately factors in the security risk into the price.
Croatia is not isolated from these developments, as wholesale prices on the European market directly spill over into the domestic energy system. Although one month of increases does not necessarily mean a significant jump in bills, a continuation of this trend could increase pressure on heating, electricity, and production costs.
An additional problem is the timing of the price increase. During the summer, countries fill their storage facilities for the upcoming winter, so more expensive procurement can later lead to higher costs for suppliers, industry, and consumers. The average price in July was $637, which is 55 percent higher than the average in July last year.
Meanwhile, oil and energy company Shell announced on August 3, 2026, the sale of all its renewable energy projects on the European mainland to the French company Total Energy, as reported by Dutch outlet NOS. The projects are located in the Netherlands, Italy, Spain, and the United Kingdom, and include solar power plants, onshore wind farms, and energy storage facilities.
The total capacity of these projects amounts to about 0.5 gigawatts, which constitutes approximately 12 percent of Shell's total energy projects. Shell states that the sale is part of a long-term strategy to free up capital for other investments. Financial details of the transaction have not been disclosed, and the final regulatory decision is expected by the end of 2026.
