Media: Middle East conflict drives EU fossil fuel import costs up by $13 billion

The ongoing conflict in the Middle East has already increased the European Union’s spending on fossil fuel imports by $13 billion, Euractiv reports, citing a diplomatic note.

According to the note, circulated to EU member states ahead of a March 31 videoconference of energy ministers, 28 days of conflict have led to a sharp rise in import costs for the bloc.

The emergency meeting of EU energy ministers was convened to address “uncoordinated” national measures for fuel price regulation. The diplomatic note warned that fragmented, country-specific controls on fuel prices could undermine efforts to manage the emerging energy crisis.

EU ministers are operating in crisis mode as disruptions continue in the Strait of Hormuz, a key global energy corridor. Gasoline prices at pumps across most EU countries have exceeded €2 per liter, while Eastern European nations have imposed price caps and fuel rationing to ease the burden on consumers.

The note instructed ministers to “avoid uncoordinated and fragmented national responses” while assessing the potential long-term effects of a prolonged closure of the strait. It emphasised that cross-border measures that restrict trade or distort supply and demand by encouraging inefficient consumer behaviour risk worsening market instability.

Three EU diplomats told Euractiv that ministers are expected to focus on analysing the price crisis rather than moving immediately to address supply security issues.

By Khagan Isayev