European Commission President Ursula von der Leyen has warned that billions of euros risk being wasted if EU countries do not target their energy aid towards vulnerable households and industries as the Iran war drives up oil and gas prices.
The conflict, involving the US and Israel, with retaliation from Iran including threats to choke the Strait of Hormuz, is costing the EU nearly 500 million euros a day. This has raised prices at the pumps and sparked fears of a jet fuel shortage within weeks.
Von der Leyen told EU lawmakers in Strasbourg that the bloc must learn from the 2022 fuel crisis, when Russia used energy exports to undermine support for Ukraine. She noted that over 350 billion euros were spent on untargeted measures during that period, placing a huge strain on member states' finances. 'So let us not make the same mistake again,' she said.
The Commission president urged Europe to end its reliance on imported fossil fuels by expanding renewable sources such as wind and solar, as well as nuclear power. 'Our over dependency on imported fossil fuels makes us vulnerable,' she said, adding that the impact of the Iran war 'may echo for months or even years to come.'
EU Energy Commissioner Dan Jørgensen described the crisis as probably as serious as the 1973 oil shock and the 2022 crisis combined. 'Even in a best-case scenario, it’s still bad,' he warned, noting that Europe has little control over events in the Middle East and can only try to prevent and limit the damage.
