Energy prices are surging due to the war in the Middle East, and EU leaders are discussing how to address the price increases at a summit in Brussels. Rising energy prices and fears in Europe of a new refugee crisis have pushed leaders to make the Middle East a priority at the summit. The EU Commission is involved in the discussions.
EU energy commissioner Dan Jørgensen said gas prices in the EU have risen by 70 percent since the war broke out and oil prices by 60 percent. In 30 days, the war has added 14 billion euros to the union's import bill for fossil fuels. The International Energy Agency (IEA) stated the war has caused the largest supply disruption in the history of the global oil market.
Concerns about soaring energy prices will dominate today's meeting of Eurogroup finance ministers. The EU warns of an energy crisis with no illusions about a quick solution. EU energy commissioner Dan Jørgensen warned that the consequences of the Iran war will be long-lasting.
EU energy ministers held an emergency crisis meeting on Tuesday about the consequences of the Iran war for Europe's energy supply. The EU Commission is working on a package of measures including reduced grid fees and electricity taxes, expanded state aid rules for affected industries, and simplified use of financial instruments to decouple gas and electricity prices. A one-time tax on energy companies' profits is not ruled out if prices reach 2022 levels.
Measures must be coordinated, targeted, and temporary, without risking distortion of the internal energy market or undermining long-term climate work. The European Commission has told leaders it has a mix of financial instruments that member nations could deploy to lower energy prices. No single policy will likely work to blunt the economic shocks from the war across the EU's markets.
The EU currently sees no immediate oil or gas shortages due to prior diversification of supplies and limited direct dependence on the Persian Gulf. However, security for upcoming winters cannot be taken for granted. European leaders have struggled to take a firm stance on the fighting in Iran and Lebanon, being critical of the Iranian government but not providing military support.
S. President Donald Trump to send military assets to secure the Strait of Hormuz. European Union leaders have expressed support for Arab countries in the Gulf as Iran continues to launch missile and drone strikes on targets across the region in response to attacks by the United States and Israel.
A video conference summit is being held today, Monday, bringing together European Union leaders with their counterparts from the Gulf states and the Middle East to discuss developments in the ongoing conflict between the United States and Israel on one side and Iran on the other. European Commission President Ursula von der Leyen and European Council President António Costa will join the video conference today with leaders from the Gulf states and their counterparts from Egypt, Iraq, Jordan, Lebanon, and Syria. EU foreign policy chief Kaja Kallas and other European leaders held talks with Gulf Cooperation Council officials on Thursday in Brussels, denouncing Iran's attacks against the GCC countries.
A meeting will provide an opportunity to hear leaders' assessments of the situation and discuss further support from the EU and member states to countries in the region and ways to end the current conflict. It is unclear which leaders from the Middle East will participate, but from the EU side, EU Council President Antonia Costa and EU Commission President Ursula von der Leyen will attend. The timing and participants of EU-GCC meetings appear contradictory, with video conferences and Brussels talks scheduled on different days.
The Gulf states, which are facing drone and missile attacks, are eager for air defense systems that do not cost millions of dollars per missile and thus do not risk running out of ammunition. Ukraine has offered assistance, expressing its willingness to share weapons designed to intercept drones with the Gulf states. Senior EU officials are likely to share details about the two ongoing maritime defense missions, Aspidis and Atalanta, which are set to be reinforced by two French ships.
Aspidis was originally launched to protect commercial shipping from attacks by the Iranian-backed Houthi rebels, but it has taken on a new scope and urgency as the war in the region has intensified. European countries have increasingly been drawn into the widening conflict, with France and the United Kingdom on Wednesday announcing plans to send warships and air defence assets to Cyprus. EU countries will discuss ways to mitigate the war's impact on global energy markets, given the halt in liquefied natural gas production at a major Qatari refinery and the sharp rise in oil prices.
They will also discuss how to complete the repatriation of thousands of European citizens currently stranded in the region. Since 2021—and particularly after the March 2023 reconciliation agreement between Iran and Saudi Arabia—the GCC states have increasingly prioritized diplomacy over confrontation, engagement over isolation, and regional dialogue over military escalation. S.
S. and Israeli security guarantees. The approach began to change after Trump withdrew in 2018 from the 2015 Iran nuclear deal and military tensions soared in the 2018-2020 period.
Saudi Arabia and the UAE faced direct attacks to their energy infrastructure by Iran-backed groups. Today, all six GCC members are engaged in direct and multilateral discussions with Tehran. In the latest example, Iranian Foreign Minister Abbas Araghchi visited Riyadh on Oct.
9 and met with Crown Prince Mohammad bin Salman, before continuing to Doha, Qatar. These diplomatic interactions have been critical in preventing the Gaza conflict from expanding into an even fiercer and broader regional war. The Gulf states recognize that their ambitious national development plans cannot succeed in a region embroiled in constant military conflict, especially one involving Iran.
At an emergency summit of the Organization of Islamic Cooperation following the outbreak of the Gaza war, former Iranian President Ebrahim Raisi was invited to Saudi Arabia by the Saudi crown prince. This marked the first high-level bilateral meeting between the two countries in over a decade. After Iran attacked Israel with missile and drone strikes in April 2024, in retaliation for the Israeli bombardment of an Iranian consulate in Damascus, the Gulf states doubled down on their engagement with Tehran.
Warm exchanges following Raisi’s death in a helicopter crash in May, and the high-level attendance at his funeral by GCC leaders, underscored the trend toward rapprochement. This diplomatic momentum continued when Masoud Pezeshkian succeeded Raisi after winning presidential elections in June. GCC leaders congratulated him and sent high-level delegations to his inauguration.
When Araghchi became Iran’s new foreign minister, his GCC counterparts quickly reached out and met with him on the sidelines of a meeting. The meeting came amid mounting concerns over the widening fallout of US-Israeli attacks on Iran, which have killed at least 1,230 people since Saturday, according to Iranian state media outlets. The US on Wednesday said it had sunk an Iranian frigate in international waters, killing dozens of people on board.
Iran also continues to fire at countries across the region, including Qatar, Bahrain and Kuwait, while its strikes have progressively targeted energy infrastructure, raising fears they could affect global energy markets. French President Emmanuel Macron is traveling to Cyprus to show France's solidarity following last week's drone and missile attacks on the island. The move comes after a British Royal Air Force base on the Mediterranean island was targeted by an Iranian-made drone earlier this week, fuelling alarm.
On Thursday, Italy said it will send naval assets to Cyprus in the coming days, along with the Netherlands and Spain. The 13th Baku Global Forum brought together global leaders to address key international challenges including energy security, climate transition, and migration, according to reports. The forum highlighted the importance of cooperation and dialogue in addressing complex policy challenges.
EU energy commissioner Dan Jørgensen concluded that European energy independence is the only way forward. At a summit in Brussels today, member states agreed to strengthen control at their borders and promise to use both money and diplomacy to avoid a situation similar to the 2015 refugee crisis. EU leaders will use all means to prevent the war between Iran and Israel from leading to a new wave of refugees to Europe.