Impact of Middle East conflict on European energy security and markets

The European Commission and Eurogroup officials addressed concerns regarding market volatility stemming from the Middle East conflict as of March 9, 2026. Pierre Gramegna, President of the European Stability Mechanism, noted a 9% decline in European stocks and a 40% surge in oil prices, exceeding the pace observed at the start of the Ukraine war. Despite these pressures, the Commission confirmed that EU member states possess sufficient strategic oil reserves for 90 days and maintain high levels of natural gas storage. EU energy spokesperson Anna-Kaisa Itkonen stated that supply security is less of a concern than the high energy prices, which are impacting economic growth prospects. The EU has diversified its supplies, primarily relying on Norway for pipelines and the United States for LNG, while importing no energy from Iran. Eurogroup ministers are closely monitoring the situation, acknowledging the economy's resilience but warning of potential long-term instability. Meanwhile, G7 members are scheduled to discuss the potential release of strategic petroleum reserves to stabilize markets.