The escalating Iran conflict has pushed oil prices past the $100 mark, triggering severe warnings from trade associations in Italy and Portugal as households face hundreds of euros in additional energy costs and rising prices for essential goods.
Energy Price Surge
Italian families face an estimated 350 euros in extra costs for oil and gas, with gas bills potentially rising by 43%.
Impact on Transport and Industry
New car prices could rise by 1,450 euros, while motorists incur 16.5 million euros in additional daily fuel costs.
Strategic Leverage
Iran's Supreme Leader Mojtaba Khamenei has threatened to use the Strait of Hormuz, which handles 20% of global oil, as leverage.
Agricultural Sector Alarms
Portuguese agricultural cooperatives are demanding fuel discount parity to survive the escalating energy crisis.
The Iran conflict, now in its third week, has pushed oil prices above $100 per barrel, triggering warnings from Italian and Portuguese trade associations about severe economic consequences for households and businesses across southern Europe. Brent crude and WTI recorded weekly gains of 10% and 7% respectively, according to the verification log. Italian trade body Confcommercio warned that electricity bills could rise by up to 13% and gas bills by up to 43%, according to ANSA. The conflict has also prompted Iran's Supreme Leader Mojtaba Khamenei to threaten use of the Strait of Hormuz as leverage, a waterway that accounts for over 20% of global oil flows. Cold weather has added further pressure on gas markets, compounding the supply shock from the conflict, ANSA reported on March 14.
Italian business associations have issued a cascade of warnings about the knock-on effects for consumers and industry. The CGIA estimated that Italian families will face an additional 350 euros in costs due to rising oil and gas prices. CNA reported that electricity has recorded the highest price increases among raw materials, followed by copper, aluminum, and iron. CNA Marche, the regional branch of the confederation, issued a specific alarm about repercussions on local businesses from the escalation in Iran. Motorists are bearing an additional collective cost of 16.5 million euros per day due to fuel price hikes, according to ANSA. Federcarrozzieri, the national union of independent Italian bodyshops, warned that the price of a new car could increase by as much as 1,450 euros as a result of the Iran crisis.
The Strait of Hormuz has historically been a focal point of geopolitical tension involving Iran, given its role as the primary export route for oil from the Persian Gulf region. Disruptions to the strait have repeatedly caused spikes in global energy prices. Italy, as a major European economy heavily reliant on energy imports, is particularly exposed to volatility in oil and gas markets. The current conflict in Iran entered its third week as of March 14, 2026, with oil markets pricing in extreme swings, as reflected by the CBOE Crude Oil Volatility Index reaching its highest levels since the outbreak of the conflict, according to Reuters.
350 (euros) — estimated additional annual cost per Italian family
Projected Italian energy bill increases: Electricity: 13, Gas: 43
In Portugal, the agricultural sector has also raised the alarm. The CONFAGRI demanded parity in fuel discounts to protect the agricultural sector from the rising cost of energy, according to SAPO. The Portuguese confederation argued that without equivalent relief measures, farmers would face disproportionate financial pressure from the global price surge. The demand reflects a broader pattern across southern Europe, where energy-intensive sectors are pressing governments for targeted support as the Iran conflict continues to reverberate through commodity markets. No confirmed information is available on the Portuguese government's response to CONFAGRI's demand as of the time of reporting.