Europe is losing nearly €500 million a day as the Middle East conflict drives up fossil fuel prices, European Commission President Ursula von der Leyen said.
The conflict in Iran has been ongoing for two months, putting significant pressure on the global economy and the energy market. The disruption of stability in the Middle East has led to rising fossil fuel prices and forced the major world powers to reconsider their energy security strategies.
Von der Leyen made a number of statements to the European Parliament on Wednesday in Strasbourg. One of the most significant concerned the fact that, “In just 60 days of conflict, our bill for fossil fuel imports has increased by over €27 billion, without a single molecule of additional energy.”
In addition, she also stated that the conflict is further proof that the EU must accelerate its transition away from imported fossil fuels and electrify more quickly. The Commission will present an Action Plan on Electrification by the summer, including an “ambitious” EU-wide target. The plan is now expected on 10 June, alongside a broader strategy to strengthen energy security.
“The way forward is obvious. We must reduce our overdependence on imported fossil fuels and boost our home-grown, affordable, clean energy supply. From renewables to nuclear, in full respect of technology neutrality,” she said.
She is calling for faster progress on the EU’s network package, presently under discussion by European legislators and governments, which aims to enhance infrastructure to handle greater volumes of renewable energy and rising electricity demand. In addition, she went on to call for closer coordination on the stocks of diesel and jet fuel, oil stock releases and refinery production, which form part of Brussels’ broader response to the energy crisis, unveiled by the Commission last Wednesday.
On Tuesday, US President Donald Trump instructed his advisers to prepare for a prolonged blockade of Iran, a strategy aimed at squeezing Tehran’s economy by restricting shipments to and from its ports. This approach could potentially disrupt oil and gas flows through the Strait of Hormuz.
