EU warns of prolonged energy shock, forced cuts if Iran war continues

The ​European Union warned member countries on Wednesday that if the Iran conflict ‌continues, energy markets will face a prolonged supply shock that would force cuts to fuel consumption, EU diplomats told Reuters. Europe has not ​yet faced supply shortages, but is grappling with soaring oil and gas ⁠prices and airports have warned the first jet fuel shortages could hit within weeks. In a ​closed-door meeting with EU countries’ ambassadors on Wednesday, the European Commission said it was considering two ​main scenarios: one where the ceasefire agreed between the U.S. and Iran holds, and the U.S. blockade of the strait is ​lifted, oil and gas flows would recover in a few months and prices should decline. And another if tensions continue, Europe could struggle to fill its gas storage ahead of winter. Localised shortages of jet fuel are also possible, the ​Commission said, according to the diplomats.