Sources say that the EU is urging countries to fill up gas storage tanks early in anticipation of the Iran War.

As the Iran War disrupts fuel markets around the world, EU diplomats have urged EU countries to begin filling up gas storage caverns as soon as possible in order to be prepared for winter next year.

The diplomats reported that the Commission reiterated in a meeting behind closed doors that the EU gas supply is not at immediate risk, but encouraged the governments to take action to combat the soaring price.

They added that it was important to begin building up stocks in April so as to be prepared for the winter.

Since the U.S. and Israel war against Iran began in February, European gas prices have risen by more than 70%.

The conflict has thrown energy markets into chaos by blocking the Strait of Hormuz which is responsible for?20% of all global oil and LNG flows. Moreover,?Iranian strikes have knocked out?17% of Qatar's capacity to export LNG.

The Commission has also stated that the governments may use a flexible provision in EU law, to reduce their storage targets to 80% capacity before winter instead of the formal requirement of 90%.

Gas Infrastructure Europe data shows that EU gas storage is unusually low at this time of the year, with just 28% filled.

Brussels wants countries to fill up early so that they don't have to rush to buy gas later in the year, which could cause new price spikes.

Gas prices are soaring and companies are hesitant to buy gas for storage. Stocks in some countries are?near empty. The Netherlands has just 6% capacity.

A spokesperson for the Commission told a news conference on Thursday morning that "there is no issue with EU gas supplies, which rely primarily on Norway and America rather than Middle Eastern suppliers affected by the attacks." Reporting by Kate Abnett. Mark Potter (Editing)

(source: Reuters)