The bloc is facing an energy crisis due to the Strait of Hormuz disruption, with soaring diesel prices triggering protests
The EU is sliding into a fuel crisis driven by a global supply shock caused by the US-Israeli attack on Iran. It has already triggered protests, early signs of shortages, and warnings of the wider economic impact.
This has resulted from the disruption of the Strait of Hormuz, a critical route for global energy shipments. Oil prices surged above $120 per barrel during the escalation, and while crude fell below the $100 mark after a two-week US-Iran ceasefire was announced on April 7, it remains well above the $70 level before the war. Prices have remained volatile amid uncertainty over the truce and continued disruption to shipping through the strait.
Diesel and kerosene have emerged as the central pressure points in the crisis. Europe’s benchmark diesel and jet fuel prices have risen above $200 per barrel equivalent from below $100 in January, according to Bloomberg. Jet fuel prices have also surged since the start of the conflict in late February, according to industry data cited by multiple outlets.
Why has diesel become more expensive than gasoline?
The European market has shifted toward higher diesel consumption following decades of tax policies that lowered diesel taxes compared to gasoline.
The EU’s refining system produces a different mix of fuels than the market consumes. A barrel of crude oil typically yields about 40-50% gasoline, but only around 30–40% diesel and jet fuel combined, with the rest made up of heavier products.
This mismatch has left the bloc structurally short of diesel. The region is a major net exporter of gasoline but relies on imports for a significant share of its diesel and jet fuel.
Diesel has traded above gasoline prices at the pump in several EU countries.
Rising wholesale costs have fed through to consumers. Diesel prices at the pump have exceeded €2 per liter in multiple countries, according to national data and media reports — equivalent to roughly $8.80–$10.50 per US gallon, compared with about $5.60 per gallon in the US. Governments in Italy, Portugal, Slovenia, Hungary, Spain, Poland, and Ireland have introduced tax cuts and other measures to limit the impact of rising fuel costs.
Why are farmers and truckers protesting?
Rising diesel prices are hitting sectors most dependent on the fuel, particularly agriculture and road freight. The EU’s transport sector is facing a “fast-moving diesel shock,” according to logistics platform Logifie.
Ireland has become the most visible flashpoint of the crisis. Fuel protests have spread nationwide since this past Tuesday, led by farmers, truckers and transport workers, disrupting supply chains and transport networks, according to local media.
Blockades have strained fuel distribution, with queues forming at petrol stations with some running dry amid panic buying. On Thursday, the government called in the army to clear the blockades.
During a protest march in Dublin on Friday, demonstrators carried a coffin with “RIP Ireland” written on it.
Fuel protesters now leaving O’Connell Street for Kildare Street, carrying a coffin pic.twitter.com/5tbT6wkMNL
What do jet fuel shortages mean for summer travel?
Airports across Europe could face “systemic” jet fuel shortages within three weeks if the Strait of Hormuz remains closed, according to a letter sent by an airport industry group to the European Commission, as cited by the Independent.
According to Corriere della Sera, “some airports on the continent have been experiencing shortages in jet fuel quantities for days without officially reporting it.” The outlet cited its sources on Friday as saying that “it’s such a sensitive issue that official talk remains tight-lipped,” adding that Brussels is hoping the truce between the US and Iran will hold.
Ryanair, Europe’s largest airline by passenger numbers, has started reducing flights to popular destinations, with chief executive, Michael O’Leary warning that the airline will not be able to run its full summer schedule if the Strait of Hormuz remains closed.