EU energy ministers to convene Tuesday on Iran war supply crisis
European Union energy ministers will meet by videoconference on Tuesday, March 31, to coordinate a joint response to the oil and gas market disruptions triggered by the war in Iran, according to an internal EU briefing document cited by Reuters. The emergency session comes as European natural gas prices have surged more than 70 percent since hostilities began on February 28, with energy sector leaders warning that supply shortages could reach the continent within weeks.
Ministers will be asked to identify concrete measures that could be put in place to address the tightening of oil and gas markets in a coordinated manner, according to the EU document. Officials are also pressing member states to begin filling natural gas storage tanks ahead of next winter, to avoid a scramble for supplies later in the year that could trigger further price spikes.
The document urges governments to avoid uncoordinated and fragmented national responses as well as market-disruptive signals, a warning that reflects growing concern about countries acting unilaterally to secure their own supplies.
Shell CEO Wael Sawan, speaking at the CERAWeek energy summit in Houston, warned that fuel supply disruptions that first hit South and Southeast Asia are now moving toward Europe. He said the impact had spread from South Asia to Southeast Asia, then to Northeast Asia, and is increasingly being felt in Europe as April approaches, according to CNBC. Jet fuel supplies are already tightening, with diesel and gasoline expected to follow. German Economy Minister Katherina Reiche echoed the warning, saying shortages could reach Europe in April if the conflict continues.
The crisis stems from the U.S.-Israeli military offensive against Iran that began on February 28, which effectively shut down the Strait of Hormuz, the chokepoint through which roughly one-fifth of global oil and gas supply passes. Crude oil prices have risen approximately 40 percent in recent weeks, briefly approaching $120 per barrel. The disruption has already pushed the Philippines to declare a national energy emergency and prompted South Korea to prepare for worst-case scenarios.
The impact across the EU has been uneven. Gas prices have risen 89 percent for Dutch TTF April futures, 82 percent in France, and 79 percent in Spain since February 28, according to the European Energy Exchange. European Commission President Ursula von der Leyen described the conflict as a seismic external shock with a profound internal impact on Europe.
The European Council reaffirmed on March 19 that the energy transition remains the most effective strategy for achieving greater autonomy and bringing prices down, but the bloc's immediate challenge remains securing enough fuel to keep economies running through the summer.
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