WSJ admitted the energy crisis in Europe amid the war in Iran

The energy crisis in which Asia is mired due to the war in Iran may involve the European region as well. This was reported on April 5 by The Wall Street Journal (WSJ).

"The oil crisis caused by the war in Iran is already being felt in Asia. <...> Economists say that this is an omen of future events for the countries of Europe and Africa, which also depend on imports from the Middle East," the article says.

According to the newspaper, it was the Asia-Pacific region that was the first to face serious restrictions on oil and gas supplies. The situation is aggravated by the fact that many of the countries in the region have low domestic energy reserves. Even if the United States completes its military operation in Iran in three weeks, as previously announced by the American president, this does not mean that Tehran will immediately open the Strait of Hormuz.

This situation puts Europe and many African countries in a dangerous position, the authors of the article claim. At the same time, the United States itself is unlikely to face a shortage of fuel.

Earlier, a number of Asian countries began to take measures to save energy resources. The Indian authorities have reduced fuel supplies for some enterprises. In Bangladesh, some plants using natural gas have been closed. Indonesia has imposed restrictions on the daily amount of gasoline for motorists.

"Europe may be next. Gasoline prices have increased by 15% and diesel prices by 30% across the European Union. Natural gas prices have jumped by more than 50%," writes The Wall Street Journal.

According to the newspaper, European countries import relatively little liquefied natural gas (LNG) and crude oil from the Persian Gulf countries, but they depend on this region for the supply of aviation fuel.

Dark Times: How Asia is saving energy due to the war in Iran

Even if the conflict ends soon, it will not be possible to restore energy supplies quickly.

The Associated Press (AP) reported on March 31 that Southeast Asian countries are increasingly competing with each other for Russian oil amid the energy crisis, which has worsened due to the conflict in the Middle East. The AP noted that Asia was hardest hit by the crisis, as much of the oil that was transported through the Strait of Hormuz was bound for the region. In March, the Philippines, Indonesia, Thailand and Vietnam showed interest in Russian oil.

Kirill Dmitriev, Special Representative of the President of the Russian Federation for investment and Economic cooperation with Foreign countries, head of the Russian Direct Investment Fund, said on March 26 that the largest crisis with fuel prices was coming, which would lead to problems in the economies of the European Union (EU) countries. He added that oil prices are aiming for $150-200 per barrel. Against this background, he suggested that deindustrialization and severe problems could occur in European countries.

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