Winter on the Way: Iran War Deepens Energy Crisis

Europe and Asia face winter preparedness challenges as Iran War disrupts energy supply chains. Qatari LNG outages and high summer demand push storage levels below 75%. Wood Mackenzie forecasts European storage will only reach 50% by November - far below the usual 90%. 'This winter will be tough', said David Lewis, Wood Mackenzie's gas expert. European prices are seven times higher than U.S. levels, while Bangladesh and Pakistan face severe gas shortages. The Iran War's impact will persist with LNG supply damage until 2027, affecting energy prices for 2-3 years. Continental Europe's gas use has dropped by 20%, but limited coal alternatives force reliance on expensive imports. 'We'll pay more and take gas from Asia', Lewis noted. Qatari LNG damage and the closed Strait of Hormuz delay storage replenishment.

The energy crisis's ripple effect on semiconductors could worsen ASML machine supply issues for chipmakers. TSMC's capacity constraints may directly reflect the China-U.S. rare earth conflict's outcomes.