US oil buoys Swiss fossil fuel needs amid Middle East conflict 

The Middle East conflict has caused petrol and diesel prices to rise in Switzerland too. Keystone / Sven Hoppe

Series Switzerland and fossil fuels, Episode 1:

The war in Iran has disrupted the global movement of oil and gas. Although Switzerland does not directly depend on the Persian Gulf for its energy supply, an extended Middle East conflict and high energy prices will have consequences for the Alpine country.

The price of oil – and even more so that of natural gas – skyrocketed following the military offensive by Israel and the United States against Iran, and Tehran’s subsequent retaliation.

Iran has closed the Strait of Hormuz, a small sea corridor separating the Arabian Peninsula from the Iranian coast, and threatened to strike ships attempting to cross it. This means that about a fifth of the world’s crude oil trade is blocked, as ships carrying oil and gas produced in Qatar, the United Arab Emirates and other Middle Eastern countries cannot move.

The closure affects all oil-consuming countries, even if – like Switzerland – they do not depend on crude oil transiting through the Strait of Hormuz.

Nations heavily dependent on imports from the Middle East, mostly in Asia, have suffered the full brunt of the crisis. Europe is much less dependent on the Gulf region, but it is still exposed to fluctuations in global fossil fuel prices. Even if oil producers resume normal operations quickly, the market will remain unstable for months, according to analystsExternal link.

In Switzerland, prices for diesel and fuel oil prices rose by 8.6%External link and 40%External link respectively between February 28 and March 9. Fossil fuel supplies, however, have not been affected for now. Avenergy, the organisation that brings together oil-market players in Switzerland, stated on March 9 that oil supplies in the country are currently “secure”, as the market has sufficient quantities of oil.

“Our supply of oil products is always guaranteed; there is no fear of shortages,” Avenergy spokesperson Ueli Bamert told Swissinfo. Transport and logistics are very resilient and, if one source is unable to deliver, products can be imported from other regions, he said.

Series: Switzerland and fossil energies

Switzerland has pledged to phase out fossil fuels and continue the transition to renewable energy sources. At the latest United Nations Climate Conference (COP30), more than 80 countries, including Switzerland, called for a clear roadmap for turning away from fossil fuels.

At the same time, Switzerland remains heavily dependent on oil and gas imports, especially for transport and building heating. This series analyses Switzerland’s energy dependency and its somewhat ambiguous relationship with fossil fuels in the international context.

The stability of supply is due to the fact that Switzerland obtains its fossil fuels from nations outside the Middle East. However, even if supplies are secured, the country and its population will still experience price and cost-of-living effects due to tensions in the region.

That’s because Switzerland remains exposed to global energy markets, prices fluctuations and international supply chains. If the conflict continues months into the future, Switzerland will have to replenish its oil reserves at higher prices, with consequences on energy bills and transport and heating costs. The economic impact could exceed the effect of the 39% U.S. tariffs imposed on numerous Swiss imports in August 2025, according to analystsExternal link.

Oil tankers and cargo ships stranded in the Strait of Hormuz, March 11, 2026. Keystone / AP

Switzerland buys half of its oil from the US

Switzerland imports all the fossil fuels it consumes, as it has no resources of its own. The country spends an average of CHF8 billion ($10.1 billion) a year on oil, natural gas and, to a lesser extent, nuclear fuels, according to the Swiss Energy Foundation.

Oil-based products cover almost half of Switzerland’s energy needs (46% in 2024External link). They are essential for transport, heating buildings and industrial processes. Natural gas, on the other hand, covers around 12% of Swiss demand and is mainly used for heating homes and cooking.

Switzerland imports half of its crude oil from the US. In 2025 it purchased 1.5 million tonnes of oil from the US with a total value of CHF691 million, notes an analysis of customs data External linkby Swiss public broadcaster SRF. Nigeria is the second-most important supplier, as this chart shows:

The US has been Switzerland’s main oil supplier since 2023. The lifting of the ban on oil exports from the US in 2015 and new extraction techniques such as fracking have increased its production, and consequently, its exports.

The US has now replaced Libya, which for years was Switzerland’s primary source of crude oil. Dependence on the North African country has gradually decreased since the 2011 civil war and the fall of Muammar Gaddafi.

Private companies decide where Switzerland buys its oil

The oil imported is processed by the Cressier refinery (in Neuchâtel, eastern Switzerland), the only such plant still operating in the country. The refinery produces about 30% of the petrol, diesel and heating oil consumed nationwide. The remaining 70% is covered by refined oil products imported from the European Union, which in turn obtains its supplies from the United States, Norway and Saudi ArabiaExternal link.

Private companies, and not the national government, decide from which countries Switzerland imports oil. “We buy crude oil from several states. Decisions are based on economic and operational criteria, which can change at any time,” VAROPreem, the company that operates the Cressier refinery, told SRFExternal link.

One determining factor is the composition of the oil: not all qualities are equally suitable for producing the various types of fuel. The mix of light and heavy crude oil is therefore a key element in the choice of supplier countries.

The Cressier refinery is the only facility of its kind in Switzerland. Keystone / Laurent Gillieron

Competition between Asia and Europe for liquefied gas

The situation with regard to natural gas imports for Switzerland, which obtains its supplies from European Union markets, is not critical at the moment either, says the Swiss Gas Industry Association.

The impact on energy prices depends largely on how long the situation in the Strait of Hormuz will remain tense, says spokesperson Janos Kick. If the situation eases by early to mid-April, the market should be able to absorb the effects.

In 2025 Europe – and indirectly Switzerland – imported more than half of its gas (in gaseous state) from Norway and Algeria. Liquefied natural gas (LNG), on the other hand, was purchased mainly in the United States and in smaller quantities in Russia, African countries and Qatar.

A more prolonged interruption of maritime traffic in the Persian Gulf, on the other hand, could have a significant impact on gas storage in Europe, warns the Swiss Gas Industry Association. In the summer, companies in the sector will have to build up reserves for the coming winter. The filling level of European storage facilitiesExternal link is currently around 29%, compared to 39% a year ago.

“It will take a lot of gas this summer to fill up storage,” Frédéric Rivier of Swiss company Gaznat told the business daily AgefiExternal link.

Interviewed on Swiss public broadcaster RTS, gas and energy specialist Anne-Sophie Corbeau recalled that 85-90% of the LNG transiting the Strait of Hormuz is destined for Asia. She said External linkcountries such as Japan, Taiwan and South Korea will be able to put pressure on producer states to redirect cargo ships originally planned for Europe to Asia.

Although Qatar’s LNG currently accounts for only 5% of European gas importsExternal link, it is set to play an increasingly important role for the EU and Switzerland. It should replace part of the gas coming from Russia, which was the EU’s main energy supplier before the Russian invasion of Ukraine.

As part of the sanctions imposed on Moscow, the EU announced a blanket ban on the import of Russian gas in 2027. Switzerland will ban the purchase and import of LNG from Russia from April 25External link.

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Reserves for four-and-a-half months

Even if the blockade of fuel transports from the Middle East were to continue, Switzerland would not run out of gas. In the event of supply shortages, measures are already in place, a spokesperson for the Federal Office for National Economic Supply said on March 9.

The government could release compulsory stocks of petroleum productsExternal link. Petrol, diesel and fuel oil would be able to cover Swiss needs for four-and-a-half months.

Altogether, that’s about 18 weeks: a far longer duration than the “four to five weeks” envisaged by US President Donald Trump to end the war in Iran.

What are the economic consequences of the war in Iran for Switzerland?

On March 9, the price of oil exceeded $100 (CHF79) per barrel for the first time since the Russian invasion of Ukraine in 2022.

If oil prices were to stabilise permanently at $90 per barrel, economic growth would have to slow down by 0.2-0.4% per year, and this for two consecutive years. This would equate to a loss in average income per person of around CHF200-400 per year, Hans Gersbach, co-director of the federal technology institute ETH Zurich’s KOF Centre for Economic Research, told SRFExternal link.

In the case of an oil price permanently above $105, these income losses would be considerably higher: between around CHF500 and CHF750 per person.

The economic impact would be slightly stronger than the 39% US duties introduced on many Swiss import goods in August 2025, according to Gersbach.

Edited by Gabe Bullard/vdv. Translated from Italian by AI/ts

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Series Switzerland and fossil fuels

• Episode 1: 1. US oil buoys Swiss fossil fuel needs amid Middle East conflict