EU tells members to prepare for 'prolonged disruption' to energy markets from Iran war

• European gas prices have jumped more than 70% since the U.S.-Israeli conflict with Iran began on February 28, 2026
• EU Energy Commissioner Dan Jorgensen urged governments to avoid measures that increase fuel consumption or limit petroleum product trade, and to defer non-emergency refinery maintenance
• Europe's refined petroleum product supply (diesel and jet fuel) is the primary short-term concern, despite direct crude oil and natural gas imports remaining unaffected as Europe sources these mainly from outside the Middle East

Summary

The European Union has warned member states to prepare for "prolonged disruption" to energy markets stemming from the ongoing U.S.-Israeli conflict with Iran, according to a March 30 letter from EU Energy Commissioner Dan Jorgensen.

Key Market Impact:

• European gas prices have surged over 70% since the conflict began on February 28
• The Strait of Hormuz, a critical shipping route, has been closed
• Europe's crude oil and natural gas supplies remain unaffected as most imports come from non-Middle Eastern suppliers

Primary Concerns:

The EU is particularly worried about short-term supplies of refined petroleum products, including jet fuel and diesel. Commissioner Jorgensen urged governments to avoid measures that would increase fuel consumption, restrict petroleum product trade, or discourage European refinery output.

Recommended Actions:

• Member states should defer non-emergency refinery maintenance
• Governments must make timely preparations for extended market disruption
• An emergency meeting is scheduled for Tuesday, March 31

Market Context:

Europe's heavy dependence on imported fuel makes it highly vulnerable to Middle East conflicts affecting global energy prices. While direct supply routes haven't been impacted, the closure of the Strait of Hormuz and broader market volatility are creating significant price pressures. Related reports indicate U.S. pump prices have reached $4 per gallon due to the conflict's impact on global energy supply.

The situation underscores Europe's energy security vulnerabilities despite diversification efforts away from Middle Eastern suppliers.