European Commission addresses economic impact of Middle East conflict on energy costs

European Commission President Ursula von der Leyen reported that the European Union's fossil fuel import costs have risen by over 22 billion euros in the 44 days since the escalation of conflict in the Middle East. Von der Leyen emphasized that the ongoing closure of the Strait of Hormuz is causing significant damage and hindering maritime navigation. She warned that Israel's military actions in Lebanon threaten diplomatic stability in the region. To mitigate economic fallout, the European Commission is examining coordinated gas storage strategies and the joint release of oil reserves. Proposals for new energy price measures are scheduled for presentation on April 22, with EU leaders set to discuss these at a summit in Cyprus next week. Additional plans include more flexible state-aid rules for industries and potential adjustments to the emissions trading system and electricity taxes. Von der Leyen stressed that the European Union remains heavily dependent on fossil fuels and that energy prices are likely to remain high in the coming years. She also underscored the importance of accelerating decarbonization strategies to reduce long-term dependency.