Geneva: The risk of fuel shortages in Switzerland is 'very high,' according to the secretary-general of Swiss commodities trade association Suissenegoce, who warned Monday that conditions in global energy markets are becoming increasingly strained, Swissinfo reported.

According to Anadolu Agency, Florence Schurch expressed her concerns to French-language newspapers Tribune de Geneve and 24 heures, stating that the situation is becoming complicated. She mentioned that the association had already raised concerns in March, cautioning that strategic reserves in countries such as the Philippines, Vietnam, and Bangladesh could deplete this month.

Schurch highlighted the seriousness of the gas supply situation, noting that reserves typically built up during the summer might not suffice, partly due to the destruction of a refinery in Qatar that is unlikely to be rebuilt soon. She predicted a sharp rise in global food prices but suggested that the impact on Switzerland might be less severe compared to other countries.

Switzerland's dependence on storing its gas reserves abroad, particularly in Germany and France, was also a point of concern for Schurch. She warned that this reliance could pose problems during crises, drawing parallels to the COVID-19 pandemic when international support was unreliable.

The fact that Switzerland has only one oil refinery, catering to about 20% of national demand, was underscored by Schurch. She indicated that the federal government might be willing to pay higher prices to ensure energy supplies.

Schurch also mentioned geopolitical tensions affecting global energy markets, specifically referencing Iran's closure of the Strait of Hormuz following conflict with the US and Israel. Despite a ceasefire, maritime traffic through this vital channel, through which a significant portion of global oil and liquefied natural gas flows, remains restricted.