Since the war between Russia and Ukraine began, European countries have become heavily dependent on seaborne liquefied natural gas (LNG). Now, with Persian Gulf shipping at risk as a result of the war between the United States and Iran, Europe is facing rising prices for gas shipments. The European benchmark future, the ICE Dutch TTF Daily Gas 1st Position, jumped in response to the start of hostilities in the Persian Gulf.

Carol Ryan of The Wall Street Journal suggests that European countries, and maybe others, will respond to high energy prices by becoming more protectionist over renewable energy. She writes:

The takeaway for investors is that domestic power production is about to become strategic and assets should reprice. Governments in developed economies are likely to become more protectionist toward local clean-tech equipment and infrastructure companies because of geopolitical tensions and cybersecurity risks.

Developing domestic energy sources will be a priority for all governments if the Persian Gulf remains unstable.