EU Commissioner Warns of Energy Price Crisis Amid Iran Tensions
The European Union is facing an energy price crisis triggered by disruptions in oil and gas markets following the war with Iran. According to EU Commissioner Dan Jørgensen, member states should consider measures to reduce natural gas and electricity consumption.
Jørgensen stated that Europe depends heavily on oil and gas imports, with external suppliers meeting about 80% of the bloc's gas needs. This dependence exposes the EU to sharp spikes in global prices if the Strait of Hormuz is effectively closed following a war with Iran.
The Commissioner noted that while Europe is not currently facing supply shortages, the surge in prices is pressuring countries trying to fill their gas storage facilities ahead of winter, when heating demand peaks. EU gas storage facilities are currently about 70% full, which is 12 percentage points below the level recorded at the same time last year.
Jørgensen urged governments to step up winter preparations and consider measures such as limiting temperatures in public buildings, restricting heating in outdoor spaces, and turning off non-essential public lighting. He stated that the EU is better prepared than it was in the winter of 2021, thanks to increased LNG import capacity, the expansion of renewable energy, and reduced gas consumption.