EU Costs From ‘Most Severe Supply Crisis Ever’ Exceed €30 Billion

BRUSSELS, May 5 (Bernama-dpa) -- European Union (EU) Energy Commissioner Dan Jørgensen has warned of the rising supply costs for the bloc triggered by the conflict in Iran and the subsequent blockade of the Strait of Hormuz, reported German Press Agency (dpa).

"Since the outbreak of the conflict in West Asia, the EU member states have already spent over €30 billion (US$35 billion) more on fossil fuel imports without receiving any additional supply," Jørgensen told journalists in Brussels on Tuesday.

"The world is facing what is arguably the most severe supply crisis ever, one that is testing the resilience of our economies, our societies, and our partnerships," he said.

Roughly a fifth of the world's traded oil and liquefied gas normally pass through the Strait of Hormuz.

Since the start of the conflict between the US, Israel and Iran, Tehran has effectively halted shipping through the chokepoint through threats and attacks, while Washington has imposed a naval blockade on vessels entering or leaving Iranian ports.

In addition, energy production facilities in several Gulf countries have been damaged by Iranian strikes in the past months.

Jørgensen warned of the long-term consequences of the damage, saying gas production in the region "will take probably even years to remedy" while oil production is expected to recover quicker.

The EU commissioner said that the bloc was preparing for potential fuel supply issues. "We are not there yet, but it can happen, especially on jet fuel," he said.

The European Commission is expected to present guidelines to airlines later this week.

-- BERNAMA-dpa