EU Assesses Oil Supply Security Amid Middle East Tensions

Alanbatnews -

The European Commission has stated it does not anticipate an immediate impact on the European Union's oil supply security despite escalating conflict in the Middle East.

Oil prices surged as much as 9% on Monday following disruptions to navigation in the Strait of Hormuz. The disruptions followed reported Iranian actions in response to Israeli and U.S. strikes.

In an email to EU governments, the Commission indicated that it is currently not expecting an immediate impact on oil supply security, according to Reuters.

The Commission has requested that EU governments share their individual assessments of oil supply security.

Brussels is also considering convening a virtual meeting of the EU Oil Coordination Group later this week, according to the message.

This group facilitates coordination between representatives of EU governments in the event of oil supply issues.

Analysts anticipate that oil prices will remain elevated in the coming days as they assess the impact of the Middle East conflict on supplies, particularly flows through the Strait of Hormuz, a critical chokepoint through which 20% of the world's oil transits.