Iran war costs EU €500M a day, von der Leyen warns

Key Points:

• Europe is losing nearly €500 million daily due to rising fossil fuel costs driven by the Middle East conflict, with a €27 billion increase in fossil fuel import bills over 60 days without additional energy received, according to European Commission President Ursula von der Leyen.
• The U.S. is preparing for a prolonged blockade of Iran, risking further disruption to oil and gas flows through the Strait of Hormuz, a critical route for a quarter of global oil trade and significant natural gas volumes.
• Von der Leyen emphasized the need for the EU to reduce dependency on imported fossil fuels by accelerating the shift to home-grown, clean energy sources, including renewables and nuclear power, with an Electrification Action Plan expected by June 10.
• The European Commission is pushing for faster progress on upgrading energy infrastructure through the EU’s Grids Package and calls for better coordination on fuel reserves, oil stock releases, and refinery output to address the ongoing energy crisis.
• Additional measures include promoting eco-driving to conserve fuel, emergency changes to the EU carbon market to prevent price spikes, and urging Europeans to work from home and reduce driving to mitigate the impact of the energy crisis.