Libya’s oil disputes mirror Hormuz crisis, fuel European energy fears

Key Points

• Libya's internal oil disputes are amplifying Europe's energy anxieties by threatening a key supply line for crude and refined products.
• The simultaneous loss of more than 12 million barrels of oil since the regional conflict began mirrors the logistics and price pressures seen in the Hormuz crisis.
• Insurance costs for tankers have surged from 0.25% to as high as 10%, reflecting the heightened risk and logistical chaos.
• European officials are warning of 'effective shutdowns' at critical chokepoints and considering measures such as transport curbs and price caps.

Full Details

Europe's energy crisis is deepening as Libya's oil disputes echo the wider shock from the Strait of Hormuz closure, which has cut off 20% of global oil and LNG flows. The fighting in Libya has eliminated over 12 million barrels of oil, while insurance costs for tankers have skyrocketed from 0.25% to 10%, mirroring the logistical chaos in the Gulf. European energy chief Dan Jørgensen has advised governments to curb transport use, hinting at measures like drive-free Sundays and gasoline rationing reminiscent of the 1970s. Jet fuel prices in Europe have more than doubled to above $1,700 per metric ton, forcing airlines to hike fares. Asian markets are bidding up scarce supplies, diverting LNG tankers from Europe to the East. As Belgian Prime Minister Bart De Wever noted, European leaders privately discuss normalizing relations with Russia for energy access, though the EU Commission insists on no Russian imports, pushing for price caps and subsidies instead.