The European Union is closely monitoring the impact of the Iran war on fuel supplies and prices
Category: Business
NICOSIA, Cyprus (AP) — On May 13, 2026, European Union Energy Commissioner Dan Jørgensen announced that there is currently no immediate threat to jet fuel supplies. Nevertheless, he cautioned that a long-term shortage cannot be dismissed, particularly as the situation surrounding the Iran war and the Strait of Hormuz continues to evolve.
Jørgensen explained that any potential shortage will largely depend on the developments in the Iran conflict and the conditions in the Strait of Hormuz, a strategic waterway through which approximately one-fifth of the world’s oil typically passes. He noted that airlines are already feeling the effects, with companies like Lufthansa canceling numerous flights due to rising fuel costs.
As fighting in and around the Strait of Hormuz has disrupted supplies, global fuel prices have surged. Since late February 2026, jet fuel prices have more than doubled in some markets, raising concerns about the sustainability of airline operations. "We’re not there yet" in terms of a jet fuel shortage, Jørgensen stated, but he acknowledged the need for the EU’s executive arm to begin discussions with member states on how to best address the situation.
The Iran war has had a pronounced economic impact, with the European Union incurring an additional 35 billion euros (approximately $41 billion) in fuel costs since the conflict began. This financial strain emphasizes the urgency of moving away from fossil fuels. Jørgensen remarked, "Really, this is not an energy crisis. This is a fossil fuel crisis," underscoring the need for a transition to more sustainable energy sources.
Michael Damianos, the energy minister of Cyprus, which currently holds the EU’s rotating presidency, echoed Jørgensen's sentiments. He affirmed that fossil fuels, including natural gas, will continue to play a role in the EU’s energy mix in the foreseeable future, even as the bloc strives for a 90% reduction in greenhouse gas emissions by 2040. Damianos also mentioned that natural gas extracted from deposits off Cyprus’ southern coast is expected to reach European markets by late 2027 or early 2028.
The European Union has made strides toward diversifying its energy supply and increasing efficiency, particularly following the Russian invasion of Ukraine in 2022. Jørgensen emphasized that the EU remains committed to reducing greenhouse gas emissions rapidly, as the climate crisis persists.
Looking ahead, the EU is engaging in discussions with Gulf nations to explore ways to restore energy flows from the region once a negotiated peace with Iran is established. This strategic outreach aims to secure energy supplies that are not vulnerable to geopolitical tensions.
In a recent exclusive interview, Fatih Birol, the Chief of the International Energy Agency, warned that Europe may have only six weeks of jet fuel supplies remaining. He also indicated that, if oil supplies remain disrupted due to the Iran war, flight cancellations could become a reality in the near future.
As the situation develops, the EU’s leadership, including EU Council President Antonio Costa and EU Commission President Ursula von der Leyen, have expressed readiness to collaborate with Persian Gulf countries on new energy projects. These initiatives aim to facilitate energy transport to global markets without being hindered by conflicts or geopolitical instability.
In light of these challenges, the EU's energy strategy and its commitment to sustainability will be tested in the coming months. The bloc's ability to navigate the complex interplay of international relations, energy supply, and environmental goals will be closely examined by member states and industry stakeholders alike.
As of now, the EU remains vigilant, with Jørgensen affirming that the bloc is prepared to take necessary actions to mitigate any potential risks to jet fuel supplies. The upcoming months will be decisive in shaping the EU’s energy future and its response to the challenges posed by the Iran war.