EU Warns of Prolonged Energy Shock

The European Union warned member countries on Wednesday that if the Iran conflict continues, energy markets will face a prolonged supply shock that would force cuts to fuel consumption, EU diplomats told Reuters.

Global energy supplies are reeling from the war’s effective closure of the Strait of Hormuz, usually a transit route for 20% of the world’s oil and liquefied natural gas (LNG).

In a closed-door meeting with EU countries’ ambassadors on Wednesday, the European Commission said it was considering two main scenarios, diplomats with knowledge of the talks said. Reuters