European Leaders Scramble to Mitigate Oil Price Surge as Saudi Pipeline Attacked

European leaders are scrambling to mitigate the impact of rising oil prices after Saudi Arabia's East-West oil pipeline was temporarily closed due to attacks by Houthi and Iraqi forces. The disruption threatens up to 4% of global oil supply, with Brent crude oil trading at over $113 a barrel.

French President Emmanuel Macron has ordered a 'mobilisation' to tackle fuel prices, while French diplomacy is pushing for alternative routes around the Strait of Hormuz and regional de-escalation. Italian Prime Minister Giorgia Meloni has announced the abolition of stamp duty on small and medium-powered cars in an effort to cushion rising fuel costs.

Germany's Chancellor Friedrich Merz said Berlin will soon present measures to ease the impact of record fuel prices, while a Commission spokesperson noted that pricing is the major crisis rather than diesel shortages. The EU has been encouraging member states to cushion prices through taxation, but acknowledged that it is beyond its power to influence global oil prices.

As the conflict in the Middle East continues, there are growing calls for a windfall profit tax on energy companies to finance social support schemes and help fragile households pay their bills.