Middle East Conflict Costs EU €14 Billion in Energy Imports in Just One Month

BRUSSELS — The ongoing military operation conducted by the United States and Israel against Iran has dealt a severe financial blow to Europe. According to EU Commissioner for Energy Dan Jørgensen, just one month of the conflict in the Middle East has inflated the European Union's fossil fuel import bill by a staggering €14 billion.

Soaring Prices and Market Strain

Speaking after a meeting of EU energy ministers on March 31, Jørgensen outlined the stark economic realities of the Persian Gulf conflict, as reported by the Ukrainian broadcaster Suspilne. Since the hostilities began, natural gas prices across the bloc have skyrocketed by approximately 70%, while oil prices have surged by 60%.

Although the Commissioner reassured the public that there is currently no immediate physical shortage of oil or gas within the EU, he highlighted significant underlying tensions. The diesel and aviation fuel markets are experiencing considerable strain. Furthermore, constraints in global gas markets are driving up electricity costs, posing a severe threat of mounting financial burdens for both European industries and households.

"We should have no illusions that the consequences of this crisis for energy markets will be short-lived, because they will not," Jørgensen warned.

Calls for Unity and National Responses

In light of the prolonged crisis, Jørgensen urged EU member states to maintain a cohesive front, warning that fragmented national policies could further destabilize already volatile energy markets. He announced that the European Commission will soon unveil a comprehensive package of measures designed to shield families and businesses from the economic fallout.

Despite pleas for a unified approach, several nations have already taken independent steps to mitigate the crisis. On March 26, the German government approved a dedicated relief package in response to the sharp spike in fuel prices. Concurrently, Poland opted to reduce the value-added tax (VAT) and excise duties on fuel. In non-EU member Norway, Finance Minister Jens Stoltenberg announced that taxes on gasoline and diesel would be temporarily slashed starting April 1.

A Shift in Daily Life

Anticipating a protracted energy crisis stemming from the Persian Gulf conflict, the European Commission issued a public appeal on March 31. The Commission urged citizens to adopt energy-saving habits, such as working from home and reducing their reliance on cars and airplanes. Simultaneously, it called upon EU member states to urgently accelerate the deployment of renewable energy sources to build long-term resilience.