Prolonged Hormuz disruption could have "catastrophic" consequences, EU warns

On April 30, the European Union’s transport chief warned that a prolonged disruption to shipping through the Strait of Hormuz could have “catastrophic” consequences for Europe and the global economy, while stressing that there is currently no evidence of fuel shortages across the bloc.

Speaking at an informal meeting of EU transport ministers in Cyprus, European Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikōstas said the conflict-linked squeeze on fuel supplies was affecting all modes of transport, Caliber.Az reports via foreign media.

“If the Strait of Hormuz isn’t opened up to oil and gas ship traffic soon, Europe and the wider world face ‘catastrophic’ consequences,” he said.

Tzitzikōstas acknowledged that fuel prices had risen sharply and that “commercial jet fuel stocks are under pressure in certain parts of Europe”, but added that there is “no actual evidence” of fuel shortages at present.

“Europe maintains emergency reserves which can be mobilised if – if, only – it’s necessary,” he said. “For now, the market is absorbing the shock.”

The commissioner said the EU was prepared to activate emergency measures outlined in its AccelerateEU contingency planning, including closer coordination between member states, the creation of a fuel supply observatory, operational guidance for airlines and efforts to identify alternative energy suppliers.

He said Brussels was also examining “alternative suppliers, including jet fuel from the United States of America”.

Tzitzikōstas added that the European Commission could temporarily adjust some of its own regulations should the situation deteriorate further.

“The blockade of the Strait of Hormuz is a stark reminder of why we must accelerate the transition to alternative fuels,” he said.

“The European Union has to become energy independent.”

By Aghakazim Guliyev