Damascus, March 6 (SANA) – Europe’s industrial sector is facing one of its toughest challenges in decades as rising energy prices, disrupted supply chains, and intensifying geopolitical tensions place heavy pressure on key manufacturing industries.
Energy-intensive sectors such as steel, paper, and fertilizers have been particularly affected, with companies struggling to maintain competitiveness against producers in Asia and the United States.
Recent economic reports warn that escalating tensions in the Middle East and disruptions to maritime traffic in the Strait of Hormuz could usher in a new period of uncertainty for European industry. The war involving Iran has already pushed gas prices higher and revived fears of another energy shock.
Industrial pressure across Europe
Economic assessments indicate that the eurozone manufacturing sector entered 2026 under growing strain. A report by Oxford Economics suggests that Germany could be the most affected among major European economies due to its reliance on energy-intensive industries such as chemicals, automotive manufacturing, and mechanical engineering.
European banks and research institutions report that many heavy industrial facilities are operating below capacity or have scaled back production lines as energy costs surge.
Europe’s dependence on imported energy, analysts say, leaves the region particularly vulnerable to volatility in Middle Eastern energy markets.
Steel industry facing closures
The European steel industry has been hit especially hard, with several major producers reducing output or shutting down furnaces entirely due to soaring gas and electricity prices.
Similar pressures are being reported in France, Italy, and Spain, where industrial producers face rising production costs and weakening demand.
Researcher Simone Tagliapietra of the Brussels-based Bruegel think tank said European gas reserves at the end of winter were significantly lower than in previous years, reaching 46 billion cubic meters at the end of February, compared with 60 billion cubic meters last year.
He warned that any disruption in efforts to refill storage could complicate supply planning and further increase energy costs for industry.
Strait of Hormuz disruptions
The disruption of Qatari LNG exports through the Strait of Hormuz has added further strain to global markets. Europe relies heavily on Qatari liquefied natural gas to offset declining Russian energy supplies.
According to Mehdi Touil, an LNG specialist at Calypso Commodities, the Iranian blockade of the strait has trapped more than 83 million tons of LNG shipments, creating the largest shock to the market since Russia halted gas exports to Europe in 2022.
Analysts estimate that roughly 20 percent of global LNG trade passes through the strait, along with a significant share of global oil shipments.
Storage challenges and price risks
Europe now faces a complex energy challenge combining high prices, supply disruptions, and shipping risks.
Maria Belova, research director at consultancy Implementa, warned that a prolonged disruption in the Strait of Hormuz could lead to a 40-billion-cubic-meter gas shortfall in Europe, potentially triggering price spikes similar to those seen during the 2022 energy crisis.
Gas futures have already climbed to record levels, and reaching the EU’s 90 percent storage target by October may prove difficult amid declining Russian supplies and possible reductions in LNG imports from Qatar and the UAE.
Long-term industrial implications
Analysts say the ongoing crisis could reshape Europe’s industrial landscape, with heavy industries gradually relocating to regions with more stable energy supplies.
Such shifts could threaten thousands of jobs across strategic sectors and accelerate Europe’s transition toward renewable energy, supply-chain restructuring, and a reduced role for heavy industry in the continent’s economic structure.
