The European Union is actively exploring the financing of alternative energy infrastructure in the Middle East to bypass conflict-prone areas such as the Strait of Hormuz, prompted by a severe fuel shortage and escalating oil and gas prices resulting from the Iran war.
EU Leaders Propose New Energy Routes
European Commission President Ursula von der Leyen announced on Friday that the EU is prepared to collaborate with Persian Gulf nations on new projects that would deliver energy to global markets without being vulnerable to war or geopolitical tensions. "The events of the past month have taught us a hard lesson," von der Leyen stated during a press conference following an informal EU leaders' meeting in Cyprus. "Our security is not just related, it is intrinsically linked. A threat to a merchant vessel in the Strait of Hormuz is a threat to a factory, for example, in Belgium."
While von der Leyen called for enhanced defense cooperation and highlighted the EU's maritime security mission in the Red Sea as a potential naval security option in the Persian Gulf, she focused her public comments on European support for repairing and constructing energy facilities in the Middle East. "We are also ready to team up with the Gulf countries to diversify export infrastructure away from solely the bottleneck of the Hormuz Strait," she said, also offering assistance in repairing Gulf energy infrastructure damaged during the war.
Impact of the Strait of Hormuz Closure
Approximately one-fifth of the world's oil and gas typically transits through the Strait of Hormuz, but the conflict has largely shut down this waterway, causing fuel prices to surge. Early Friday, Brent crude rose by 98 cents to $100.33 per barrel, while U.S. benchmark crude increased by 81 cents to $96.66 per barrel. Von der Leyen reiterated that the 27-nation bloc's energy bill had skyrocketed by 25 billion euros ($29.3 billion) over the past 43 days due to the price hikes.
Neither von der Leyen nor European Council President Antonio Costa provided specific details on which projects are under consideration or when they might proceed. However, von der Leyen referenced the India-Middle-East-Europe Economic Corridor linking the EU with the world's largest democracy. She noted that a summit between the EU and the Gulf Cooperation Council scheduled for later this year would provide an opportunity to explore such initiatives.
Focus on Southern Neighbors
Cyprus, an island nation adjacent to Lebanon, Syria, Israel, and Turkey, currently holds the rotating EU presidency. Cypriot President Nikos Christodoulides has sought to strengthen ties between the bloc and Middle Eastern countries to bolster their economies and security. This focus was highlighted by the presence of several regional leaders at the informal EU summit, including Syrian President Ahmad al-Sharaa, Egyptian President Abdel-Fattah El Sissi, Lebanese President Joseph Aoun, Jordan's Crown Prince Hussein, and GCC Secretary-General Jasem Mohamed AlBudaiwi.
"We know that Europe needs Syria as much as Syria needs Europe," al-Sharaa remarked, while Aoun called for EU support in rebuilding his war-torn country. Costa praised Aoun for banning Hezbollah's military activities, describing them as "an existential threat" to Lebanon, and pledged assistance in disarming the militant group. Costa emphasized that "the European Union is not part of the conflict, but we will be part of this solution."
Human rights groups criticized EU leaders for not intensifying pressure on Israel regarding its military campaigns in the Middle East. EU leaders, including German Chancellor Friedrich Merz, stated they would not lift sanctions on Iran until a range of issues were resolved, including ending its missile program and support for proxies in the region. "It's too early to talk about relief of any kind of sanctions," Costa said.
Defense Considerations
Cyprus itself came under attack early in the war when a Shahed drone fired from Lebanon on March 2 damaged an aircraft hangar at a British military base on the island's southern coast. In response, Greece, France, Italy, Spain, and the Netherlands dispatched warships with anti-drone capabilities to defend the island. This incident has spurred renewed interest in a clause in the EU's foundational treaties regarding mutual assistance if a member nation is attacked. Christodoulides said EU leaders agreed to begin creating a formal mechanism for such responses, as they recognized that "ad hoc arrangements" are unreliable.
