EU Braces for Energy Price Crisis Amid Iran War Fallout
The European Union is facing an energy price crisis due to the ongoing Iran war, which has disrupted oil and gas markets. According to EU Energy Commissioner Dan Jorgensen, the bloc's energy chief, Europe is heavily dependent on imported oil and gas, with foreign suppliers covering about 80 per cent of its gas needs.
The Iran war has caused a surge in global energy prices, making it difficult for European countries to fill their gas storage ahead of winter. The EU-wide gas storage is currently at 70 per cent capacity, which is 12 percentage points below the same time last year. Jorgensen urged governments to take measures to reduce gas demand and sustain gas injections into storage.
Such measures could include limiting temperatures in public buildings, preventing outdoor heating, and switching off unnecessary public lighting. Jorgensen emphasized that Europe is better prepared now than it was in winter 2021, when Russia reduced gas deliveries to the EU. However, he warned that further preparations are necessary for the upcoming winter.