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The European Union’s leading energy official cautioned on Wednesday that the severe energy crisis triggered by the United States and Israel against Iran is likely to drive up prices for months, if not years.
EU Energy Commissioner Dan Jørgensen emphasised that the impact will be long-lasting, rather than a brief or minor spike in costs.
He noted that the war is costing Europe €500 million (about $600 million) per day, warning that “very difficult months, or possibly even years” lie ahead.
The sudden loss of 20% of global oil and natural gas exports through the Strait of Hormuz has unleashed price volatility, even if EU countries manage to secure energy supplies.
Speaking to reporters, Jørgensen added that EU governments remain “very worried” about potential jet fuel shortages, particularly with the busy tourism season approaching.
“Even in a best-case scenario, it’s still bad,” he said about the current crisis, noting the damage done to energy infrastructure in the Middle East and how long it would take to fix it and restart production to levels prior to the conflict.
Jørgensen’s remarks came one day after European transport ministers shared plans to secure jet fuel supplies from the United States amid potential shortages across the continent, even if EU leaders maintain that supply security is currently safe and potential shortages could be felt differently across member states.
The Commission announced on Wednesday a new ‘fuel observatory’ to monitor jet fuel stocks and prevent EU countries from hoarding fuel at others’ expense.
The International Energy Agency recently warned that jet fuel in Europe was in short supply, a claim backed by several European airlines, which said it could lead to flight cancellations.
However, the warning has so far been downplayed by the European Commission, which argues that flight cancellations “have nothing to do” with shortages but rather with airlines’ own profitability.