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[BUSINESS] · Germany, Iran, United States · 10 sources

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Germany gas prices projected to rise amid geopolitical tensions

German gas prices are projected to rise by 10 to 20 percent by the turn of the year, according to the comparison portal Verivox. This anticipated increase is driven by rising wholesale prices, low domestic gas storage levels, and the approaching winter. Verivox energy expert Thorsten Storck noted that new customer rates have already risen by over one third since February.

The volatility is linked to geopolitical tensions, specifically the conflict between the US and Iran, which has pushed European wholesale gas prices to their highest levels in over three and a half years. Blockades in the Middle East, including the Strait of Hormuz and the Bab al-Mandab strait, are contributing to market instability.

Despite concerns regarding low storage levels, the Federal Network Agency (Bundesnetzagentur) has expressed confidence in Germany's supply security. Agency head Klaus Müller stated that current storage levels, at approximately 55 percent capacity (136 terawatt-hours), are already higher than the total amount withdrawn during the previous winter half-year. Müller also highlighted that additional gas can be imported via LNG terminals and pipelines from Norway.

Entities

Bundesnetzagentur · European Union · Germany · Institute of the German Economy · Iran · Klaus Müller · Thorsten Storck · Verivox

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