BRUSSELS — European energy markets have been strangely calm since the outbreak of the war in Iran but that might be about to change, as analysts warn governments are underestimating the seriousness of the shock to come.
Across oil, gas and other energy products — particularly jet fuel — prices in Europe have remained subdued, with officials repeating that supplies are secure, appearing to contradict institutional warnings that the world was in the throes of history’s worst energy shock.
In part, the calm is warranted. Europe has been able to adapt surprisingly well to the loss of big chunks of its supply, increasing its imports from the U.S. and other producers, boosting its domestic production and hastening the rollout of renewables.
But analysts, officials and traders warn that however clever these workarounds are, they can’t hide the brute reality that a massive portion of world energy production still remains stuck in the Strait of Hormuz, or in ruins along its coast.
