EU Sounds Alarm on Energy Price Crisis Amid Middle East Conflict

The European Union has warned its member states about a potential energy price crisis driven by the Middle East conflict. In a letter to energy ministers, EU Energy Commissioner Dan Jorgensen said the region's dependence on imported fossil fuels exposes it to turmoil in energy markets.

Europe is heavily dependent on imported oil and gas, with foreign suppliers covering around 80 percent of the bloc's gas needs. This leaves it highly exposed to surging global energy prices caused by the Iran war's effective closure of the Strait of Hormuz, normally a transit route for 20 percent of the world's oil and liquefied natural gas.

European gas prices have more than doubled since the start of the US-led war on Iran in late February, reaching their highest level since late 2022 earlier this month. Rising costs have been elevated to the top of the EU's political agenda, with companies across the bloc blaming them for undermining Europe's competitiveness.