EU warns of prolonged disruption to energy markets

European Union governments should prepare for sustained disruption to energy markets as a result of the conflict with Iran, Energy Commissioner Dan Jorgensen has said.

In a letter to ministers ahead of an extraordinary meeting, dated 30 March, Jorgensen urged Member States to take early precautionary measures in case of prolonged outages.

Europe remains particularly exposed to price volatility due to its heavy reliance on energy imports. Prices have risen by more than 70 per cent since the conflict between the US and Israel on one side and Iran on the other escalated in late February.

While direct supplies of oil and gas have not yet been disrupted, Brussels is increasingly concerned about the availability of refined products such as diesel and aviation fuel.

The Commission has urged governments to avoid measures that could worsen the situation, including increasing consumption, restricting trade or limiting refinery output. It has also recommended postponing non-essential maintenance shutdowns at European refineries.

(reuters, bak)