Energy Price Volatility: Customers Seek Fixed Contracts Amidst Middle East Conflict

As geopolitical tensions escalate in the Middle East, concerns over rising energy prices are prompting consumers to seek the security of fixed-price contracts for both electricity and gas. This trend reflects a growing desire to insulate themselves against potential price spikes, particularly in the wake of disruptions to global energy supplies.

Growing Demand for Fixed-Price Contracts

Recent weeks have seen a significant increase in customer inquiries regarding fixed-price energy contracts. ČEZ spokesperson Ondřej Svoboda confirms that the number of customers asking about these contracts has risen by approximately one-third, attributing this surge to anxieties surrounding events in the Middle East. Iran fuel prices are a key factor in this volatility.

Geopolitical Risks and Market Reactions

The conflict between the U.S.-Israeli forces and Iran, now entering its fourth week as of March 22, 2026, is having a tangible impact on energy markets. U.S. President Donald Trump threatened strikes against Iranian power plants if the Strait of Hormuz isn’t reopened, prompting retaliatory threats from Iran. USAToday reports that this escalation has contributed to rising gas prices, which averaged $3.94 per gallon on March 22, a significant increase from $2.98 before the conflict began.

Impact on Oil and Gas Prices

Oil prices have experienced significant swings, influenced by both the threats to energy facilities and the potential release of Iranian oil supplies. Reuters highlights this volatility. Still, a temporary halt to U.S. Strikes against Iranian energy infrastructure, announced by President Trump, briefly caused oil prices to tumble, as reported by MSN.

Price Increases and Supplier Recommendations

Traders warn that sustained geopolitical instability could lead to further price increases for both electricity and gas. The price of electricity on the stock exchange has already doubled, rising from 30 euros per MWh before the conflict to over 60 euros per MWh. Suppliers are now advising customers to fix their prices to avoid potential future increases.

Pavel Grochál, a spokesperson for innoga, states that the current situation will likely be reflected in price lists for fresh and non-fixed customers, with the extent of the impact dependent on the evolving situation in the Middle East and its effect on the European wholesale gas market.

LNG Supply Disruptions

The global gas market has also been affected by damage to Qatari liquefied natural gas (LNG) production facilities, resulting in a loss of approximately 20 percent of LNG supplies. Repairs to these facilities are estimated to take up to five years, further contributing to upward pressure on prices.

Current Fixed-Price Electricity Options (as of March 23, 2026)

Here’s a snapshot of fixed-price electricity rates offered by various suppliers (rates in CZK):

Electricity Price Lists for One Year

Electricity Price Lists for Two Years

Electricity Price Lists for Three Years

Key Takeaways

• Demand for fixed-price energy contracts is increasing due to geopolitical instability in the Middle East.
• The conflict between the U.S.-Israeli forces and Iran is driving up oil and gas prices.
• Disruptions to LNG supplies are exacerbating the situation.
• Suppliers recommend that customers fix their prices to protect against future increases.
• Longer-term fixations (two to three years) may offer greater price security, but careful consideration is advised.