Energy ministers of the European Union (EU) will meet on Tuesday to coordinate their response to the growing disruptions in oil and gas markets caused by the war in Iran. Europe’s high dependence on energy imports makes it particularly vulnerable. Since the effective closure of the Strait of Hormuz and the beginning of Iranian strikes on regional energy infrastructure, gas prices have surged by over 70% in Europe.
An internal document of the EU, cited by Reuters, specifies that ministers must “indicate what specific measures could be implemented to address the tightening of oil and gas markets in a coordinated manner”. It also underscores that “it remains important to avoid uncoordinated and fragmented national responses as well as disruptive signals to the market”.
Global supply tightening
The focus will be on early filling of gas stocks before next winter, stabilizing oil markets, and ensuring supplies. While the EU ensures the safety of its short-term imports, thanks to suppliers like Norway and the United States, it is concerned about the global supply tightening on some products, particularly diesel and aviation fuel.
Last week, Shell CEO Wâl Sawan warned of possible energy shortages starting in April, highlighting aviation fuel, diesel, and gasoline as the first affected products. Faced with these tensions, European officials aim to avoid a rush on stocks that could trigger new price spikes and further destabilize an already sensitive market.
