European Commission President Ursula von der Leyen announced that since the onset of military actions involving the U.S. and Israel against Iran, the European Union’s energy import costs have surged by €22 billion. This increase, noted during a press briefing in Brussels, occurred within just 44 days, highlighting the significant economic impact of the ongoing crisis.
Von der Leyen emphasized the urgent need for coordinated efforts among EU member states to address the energy crisis. She stated, “We cannot afford to act in a fragmented manner during such a crisis. Unity is our greatest strength, and it must be evident, especially in the energy sector.”
To mitigate the situation, the European Commission is exploring mechanisms for better coordination of energy procurement and stock management among member states. This aims to prevent multiple countries from simultaneously entering the market, which could drive prices up due to competition.
Additionally, the Commission is considering a coordinated release of strategic oil reserves to maximize market impact and benefit consumers. Von der Leyen assured that any emergency measures taken by member states would not undermine the functioning of the single market.
The European Commission is set to unveil a package of proposals aimed at curbing energy prices on April 22. These measures are expected to be a focal point of discussion at an informal EU leaders’ summit scheduled for next week.
Moreover, the Commission is developing a broader strategy aimed at structurally reducing energy costs. A new electrification strategy for the EU economy is anticipated to be presented by summer.
Since February 28, when the U.S. initiated a joint military operation with Israel against Iran, the latter has responded by blocking shipping routes in the Strait of Hormuz. This critical passage accounts for approximately 20% of global maritime oil shipments and over 30% of liquefied natural gas supplies, leading to decreased oil production by major Gulf producers and a sharp rise in energy prices.
The European Commission reports a €22 billion increase in energy import costs due to ongoing military actions against Iran. Ursula von der Leyen calls for unity among EU member states to effectively address the energy crisis and outlines plans for coordinated procurement and strategic oil reserve releases.