EU Faces Energy Price Crisis Amid Iran War Fallout
The European Union is facing an energy price crisis due to the fallout from the Iran war affecting oil and gas markets. EU Energy Commissioner Dan Jorgensen has written a letter to countries' energy ministers, urging them to consider measures that can curb natural gas demand.
Jorgensen said that 'we are facing a price crisis linking to a supply crisis.' He invited countries to take or continue taking measures that can sustain gas storage injections or reduce gas and electricity demand for as long as necessary. This could include limiting temperatures in public buildings, preventing outdoor heating, and switching off unnecessary public lighting.
The EU is heavily dependent on imported oil and gas, with foreign suppliers covering about 80% of the bloc's gas needs. The Iran war has caused global energy prices to surge due to the closure of the Strait of Hormuz, a transit route for 20% of the world's oil and liquefied natural gas.