JAKARTA - The surge in oil and gas prices due to the Iran war is again putting pressure on Europe. In the midst of supply disruptions and price volatility, analysts assess that this crisis actually strengthens the reasons for Europe to accelerate the transition to renewable energy.
The blockade of the Strait of Hormuz, an important route for about a fifth of the world's oil and liquefied natural gas, has made the energy market increasingly unstable. European countries are trying to contain the impact on households and industry, while maintaining the security of energy supply.
Citing an Anadolu Agency report, Tuesday, April 7, energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA) Ana Maria Jaller-Makarewicz said supply disruptions, import dependence, and price volatility now threaten European energy security. According to him, the crisis triggered by the Iran war shows that today's energy market is very fragile.
"The more we depend on gas and energy imports, the greater the risk to our security," he said.
He noted that although Europe's dependence on Qatari LNG is not dominant, Qatar remains an important supplier. According to Eurostat, the country is the third largest LNG supplier to the EU with a share of 8.9 percent of total imports.
Disruption in Qatar is also a concern. Iranian drone attacks in March damaged critical infrastructure in Ras Laffan and disrupted about 17 percent of export capacity. QatarEnergy even declared force majeure for long-term contracts.
Still launching Anadolu, Strategic Perspectives Executive Director Linda Kalcher said the Middle East conflict sent a clear message that fossil fuels were no longer cheap. According to Kalcher, since the Ukraine crisis in 2022, Europe has moved to reduce demand for fossil fuels, expand renewable energy, save energy, and diversify supplies.
At the same time, Anadolu in its report said that volatile energy prices had reignited the debate on the EU Green Deal and the Emissions Trading System (ETS). Several countries, including Italy, are asking for easing. However, European Commission President Ursula von der Leyen defended the carbon pricing system because it is considered to help reduce dependence on imported fossil fuels.
Kalcher assessed that the demand for easing reflected the company's concerns about competitiveness amid high energy prices. Meanwhile, Jaller-Makarewicz said some parties still want to maintain old investments in the gas sector. "The real cause of this problem is dependence on gas," he said.
For Europe, this war does not stop at the surge in energy prices. This crisis shows again that dependence on imported gas and oil is still a weak point.
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