Balkans Hit by Oil Shock as Iran War and Hormuz Closure Drive Energy Prices Higher in Emerging Markets

The Iran war and prolonged Hormuz closure are disproportionately impacting emerging market economies dependent on oil imports. TRT World reports Balkan nations face an acute oil shock with import costs surging. European natural gas hub prices hover around 54 EUR/MWh. The Strait of Hormuz has been closed to commercial traffic since March 2, disrupting 17.8 million bpd of flows. Goldman Sachs estimates an $18/bbl geopolitical risk premium embedded in current prices, with Brent crude above $110/bbl.