Europe Braces for Energy Crisis as Gulf and Eurasian Conflicts Bite

Europe's energy supply is facing unprecedented disruption due to conflicts in both the Gulf and Eurasia. On Friday, Saudi Arabia informed European refineries that they should not expect any crude oil deliveries next month. This warning comes as a result of ongoing tensions in various regions crucial for Europe's energy value chains.

The continent's shallow infrastructure in terms of strategic reserves for oil and gas, combined with its dependence on spot markets and volatile weather patterns, makes it vulnerable to supply disruptions. The situation is further complicated by conflicts on the periphery of the European Union, particularly in the Eastern Mediterranean, Red Sea, Straits of Hormuz, Black and Caspian Seas.