European official: The oil crisis will be prolonged and we are considering rationalizing consumption and withdrawing reserves
European Energy Commissioner Dan Jorgensen warned on Friday of a long-term energy shock in the Euro zone as a result of the ongoing US-Israeli war on Iran, which has entered its second month.
In an exclusive interview with the Financial Times, the European official said that EU countries are considering options to rationalize fuel and withdraw oil reserves in preparation for the shock.
“The EU is considering possibilities, including fuel conservation and a withdrawal from oil reserves, in preparation for a long-term energy shock caused by the war in the Middle East,” Jørgensen said.
“This is going to be a long-term crisis, and energy prices will remain high for a very long time,” he added.
The European Commissioner predicted that the situation would be worse for some other products in the coming weeks.
Oil prices are increasingly being affected by escalating conflicts in the Middle East and threats to energy shipments through the Strait of Hormuz, raising concerns about supply disruptions.
Global markets are witnessing significant volatility as a result of the US-Israeli war on Iran, which has contributed to the rise in oil prices and inflation levels.
On March 2, Iran announced the restriction of navigation in the Strait of Hormuz to what it said were ships and tankers linked to enemies, in response to the US-Israeli war that has been ongoing since February 28.
About 20 million barrels of oil pass through the strait daily, and its closure has caused increased shipping and insurance costs, high oil prices, and sparked global economic concerns.
