Baghdad: Gas prices in European markets jumped by 19% in July, reaching their highest level since early 2023, driven by the ongoing supply shortage and increased demand for electricity generation.

According to Iraqi News Agency, based on World Bank data, the price of gas in Europe rose last month to $18.06 per million British thermal units (MMBtu), the highest price level since January 2023 when prices reached $20.18. These increases reflect the supply disruptions and continued instability in the continental energy market, particularly with the ongoing disruption of Russian gas flows through Ukraine.

In contrast, data showed a marked divergence in crude oil markets, with the average global oil price falling by 4.3% in July 2026 to $79.8 per barrel, its lowest level since February. The decline affected global benchmark crudes as well; Brent crude fell 2.3% to $83.4 per barrel, while West Texas Intermediate (WTI) crude dropped 3% to $79.4 per barrel.

Experts attribute this sharp divergence between the gas and oil markets to conflicting factors. European gas is under pressure from geopolitical factors and supply shortages, while oil prices are affected by declining global demand and growing fears of an economic recession.