Iran war energy crisis worse than 1973 combined, says EU's energy chief
EU energy chief Dan Jørgensen warns the Iran war energy crisis is worse than the 1973 oil embargo and 2022 crisis combined. The assessment highlights how supply disruptions and geopolitical uncertainty are creating unprecedented pressure on global energy markets.
The EU official compared the current crisis to the 1973 OPEC embargo and 2022 Russia-Ukraine war. In 1973, supply was constrained but trade continued. In 2022, Russian energy disruption occurred but alternatives existed. Today, the Strait of Hormuz is near closure and Iran-Israel conflict risks wider escalation with few off-ramps.
The Strait handles one-third of global crude oil. Tanker rerouting, insurance refusals, and transit risk are fragmenting global energy supply chains. Spot prices are volatile and contract costs are rising. Refineries are rationing feedstock.
The crisis poses a harsh reckoning for Europe's energy independence strategy. Renewables have long build cycles and cannot meet current demand surge. Sustained oil price elevation will perpetuate inflation and growth headwinds across the continent and globally.
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