Europe races to coordinate an energy response as war pressures oil and gas supplies

European officials are scrambling to keep a fast-moving energy shock from turning into a broader economic mess, with EU energy ministers set to meet by video conference Monday to coordinate their response to oil and gas disruption tied to the war in Iran. Reuters reported that the goal is to avoid a patchwork of national responses that could further destabilize markets as prices keep climbing.

The pressure is already showing up in prices. Reuters reported that European gas prices have jumped more than 70% since the conflict began on February 28, while crude prices have surged enough to put Brent on track for one of its biggest monthly moves on record. Officials are worried not only about raw supply, but also about tightening availability of refined products such as diesel, jet fuel and gasoline.

Even with that anxiety, the EU’s immediate supply picture is not being described as a full emergency yet. Reuters reported that Europe’s current gas supplies remain relatively secure thanks to imports from Norway and the United States, but the region is still vulnerable because low storage levels and high prices are making it harder to prepare for next winter. The European Commission has already urged member states to begin filling gas storage early, starting in April, rather than waiting and risking another squeeze later in the year.

That helps explain why Brussels is leaning so hard on coordination. Reuters reported that internal EU planning has emphasized targeted relief for vulnerable households and businesses instead of broad subsidies, partly because many member states have limited fiscal room after years of overlapping crises. European Economic Commissioner Valdis Dombrovskis warned last week that the war could push the bloc toward stagflation, cutting growth while driving inflation higher.

Some countries are already taking their own steps while wider EU talks continue. Reuters reported that Germany has resisted direct fuel subsidies and instead restricted how often stations can raise prices, while Italy approved temporary excise-duty cuts and France rolled out targeted support for some workers and lower-income households. That uneven response is part of the problem EU officials are trying to solve before national measures start pulling in different directions.

The broader risk is that Europe gets hit twice: first by higher energy prices, then by the inflation and slower growth that follow. Reuters reported Monday that Germany’s March inflation rate accelerated to 2.8%, driven in large part by a 7.2% jump in energy costs, a sign that the market shock is already feeding into the real economy. For Europe, the challenge now is not just keeping fuel flowing, but doing it without reigniting the kind of price spiral that battered households and businesses during the last major energy crisis.