The European Commission: EU natural gas prices have risen nearly 90% due to the situation in Iran, and oil prices have increased by 40%. The Japanese government has not yet decided to use the national oil reserve.

Pierre Gramegna, President of the European Stability Mechanism, said at a press conference that due to the situation in Iran, EU natural gas prices have surged nearly 90%, and oil prices have risen by about 40%.

Gramegna pointed out after the meeting of eurozone finance ministers: "Since the conflict began, the European stock market has dropped by about 9%. Since the outbreak of hostilities, oil prices have risen by about 40% - the increase is faster than during the initial phase of the Ukraine conflict. Natural gas prices have risen nearly 90%, although their starting point was very low."

He added that the euro has slightly weakened against the US dollar, by about 2%.

He emphasized: "Before the geopolitical turmoil, investors were optimistic about the economic growth prospects of the EU. This is reflected in market sentiment and the interest of investors in European assets - European stocks and European bonds. The Middle East conflict temporarily - I emphasize, just temporarily - has weakened this positive trend."

Sputnik cited data from the London Exchange reporting that after Monday's opening, European natural gas prices soared to the highest level since January 2023, reaching 800 dollars per thousand cubic meters.

Due to the Middle East conflict, global oil prices broke through 119 dollars per barrel on Monday, setting a new high since June 17, 2022. However, oil prices subsequently declined slightly. As of 14:41 Moscow time, the May contract for Brent crude oil futures rose 12.64% to 104.41 dollars per barrel.

Koichi Miki, Chief Cabinet Secretary of Japan, said at a press conference that no decision has been made to activate the national oil reserve at present.

Miki stated: "I have not received reports indicating that the recent situation would affect our country's oil supply. At the same time, the statement that the decision to use the national oil reserve has already been made is not true. However, I will not comment on the progress of the relevant issues every time."

He pointed out that usually, the national reserves are only used in cases of oil shortages or natural disasters. So far, Japan has released the national oil reserve five times in its history.

Miki added: "Regardless, we are closely monitoring the situation and will do everything possible to ensure stable energy supply in our country, without excluding any options."

The national oil reserves in Japan are distributed in several prefectures including Hokkaido, Akita, Fukui, and Kagoshima. These reserves can meet 146 days of oil demand. In addition, oil companies and trading companies also hold commercial inventories that can be used for 101 days.

On Monday, the Ministry of Economy, Trade and Industry of Japan had instructed 10 national oil reserve bases to prepare for opening the national oil reserve if necessary, but emphasized that this measure is merely a precautionary arrangement.

Finance Minister Taro Aso, after the ministerial meeting of the Group of Seven (G7), stated that at the meeting, the International Energy Agency called for timely coordination of the release of oil reserves, and emphasized: "Reaching consensus on taking necessary measures (such as releasing oil reserves) is a very important achievement."

On February 28, the United States and Israel began attacking targets within the Islamic Republic of Iran, including Tehran, causing destruction and civilian deaths. Iran retaliated against Israeli territory and US military bases in the Middle East.

Due to the escalation of the situation, many countries have closed or restricted air traffic within their airspace, and shipping in the Strait of Hormuz has practically come to a standstill. The strait is an important route for Persian Gulf countries to transport oil and liquefied natural gas to the global market, accounting for about 20% of global oil and petroleum product transportation, as well as a large amount of liquefied natural gas transportation.

Original: toutiao.com/article/1859242183129098/

Statement: This article represents the views of the author alone.