Published by Global Banking & Finance Review®
Posted on March 2, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleThe European Commission sees no immediate threat to EU oil supply despite Middle East tensions; oil prices jumped ~9% due to disruptions in the Strait of Hormuz, prompting EU coordination efforts.
By Kate Abnett
BRUSSELS, March 2 (Reuters) - The European Union's gas supply coordination group will meet on Wednesday to discuss the impact of the expanding conflict in the Middle East, a European Commission spokesperson told Reuters after European gas prices leapt by more than 50%.
The gas coordination group includes representatives from EU governments, monitors gas storage and security of supply, and coordinates response measures during crises.
The EU's oil coordination group will also meet within 48 hours. Earlier on Monday, a spokesperson said the Commission expects no immediate EU oil supply impact from the escalation of the U.S.-Israeli air war on Iran, but has asked governments to share their assessments of the security of oil supplies by the end of the day.
STRAIT OF HORMUZ DISRUPTION DRIVES GAS PRICE SURGE
After the conflict led to the disruption of energy shipments through the Strait of Hormuz, the benchmark European gas price, the front-month contract at the Dutch TTF gas hub increased on Monday by more than 50% by 1341 GMT at 48.66 euros/MWh, on the Intercontinental Exchange.
The Strait of Hormuz is a conduit for more than 20% of global oil and around 20% of the world’s liquefied natural gas.
Europe has increased imports of LNG as it seeks to phase out Russian gas following Russia’s 2022 full-scale invasion of Ukraine.
The U.S. supplied 58% of EU LNG last year. The bloc also sources smaller amounts from countries in the Middle East.
The EU imported 6% of its LNG from Qatar in the third quarter of 2025, the latest EU data show. Qatar halted LNG production on Monday as the conflict prompted precautionary shutdowns of oil and gas facilities across the region.
Europe is emerging from its winter heating season, when gas demand typically peaks. At 30% full, EU gas storage sites are 9% below filling levels this time last year, data from Gas Infrastructure Europe showed.
The European Commission said on Monday that EU gas storage levels are adequate to ensure storage can be replenished ahead of next winter.
(Reporting by Kate Abnett; additional reporting by Susanna Twidale; editing by Bart Meijer and Barbara Lewis)
No, the Commission does not expect any immediate security of oil supply impact due to the conflict.
Oil prices rose by 9% after shipping in the Strait of Hormuz was disrupted following Iranian retaliatory attacks.
The Commission is gathering assessments from EU governments and considering a virtual meeting of the oil coordination group.
It is a key conduit for over 20% of global oil flows, making disruptions there significant for global oil prices.
Analysts expect oil prices to stay high as the situation and potential supply disruptions are monitored.
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