We’re in the midst of a global conflict that could once again impact energy and gas prices here in Australia. Although tensions are unfolding thousands of kilometres away, geopolitical shocks can quickly ripple through global energy markets, and Australian businesses often feel the effects. The current volatility is already drawing comparisons to the energy price spike experienced in 2022, when global disruptions between Russia and Ukraine caused major turbulence in Australia’s electricity and gas markets.
Global events are already impacting energy markets
Recent attacks and tensions in the Middle East have disrupted key oil and LNG infrastructure and raised concerns about shipping routes such as the Strait of Hormuz, which handles around 20% of the world’s oil supply. These disruptions have already pushed energy markets higher. Oil prices jumped more than 10%, reaching over $80 per barrel, while European and Asian gas prices have surged 40–50% following supply disruptions to LNG facilities.
Because Australia trades energy in global markets, particularly for gas, international price movements can influence local wholesale energy costs.
Impact of the 2022 Energy Crisis
In 2022, wholesale electricity prices in Australia doubled across all regions of the National Electricity Market (NEM). In some areas, prices surged to between $160 and $283 per MWh, with Queensland reaching around $171 per MWh. In extreme cases, wholesale electricity prices exceeded $300 per MWh, prompting the Australian Energy Market Operator (AEMO) to intervene and stabilise the wholesale energy market.
The spike flowed through to households and businesses, with Australian energy bills increasing by more than 40% during the crisis. The key driver was global gas prices. Gas often sets the marginal price of electricity in Australia, meaning higher gas prices can quickly translate into higher power prices.
This dynamic is why international events can drive local electricity price volatility.
ASX prices begin to rise
As tensions escalate, the wholesale energy market has already begun rising. While the long term impact remains uncertain, early signs point to increasing energy price volatility, particularly if supply disruptions continue or expand. These movements are already drawing comparisons to the conditions that led to the 2022 energy crisis. If wholesale prices continue trending upward, businesses could once again face significant increases in electricity and gas costs.
Next steps: Work with an energy expert
If your contracts are approaching renewal, or it has been a while since you last reviewed your energy bill, working with an energy consultant can help you navigate today’s market.
Our team can review your electricity and gas contracts, monitor wholesale price movements, and identify the right time to renew so your business secures competitive rates.
If you're ready to take control of your energy costs, speak to our team today.
Relevant Articles:
https://www.aer.gov.au/publications/reports/performance/wholesale-markets-quarterly-q1-2022
https://www.theguardian.com/world/2026/mar/02/iran-strait-of-hormuz-oil-gas-visualized
