European Commission President Ursula von der Leyen warned on Wednesday that ongoing Middle East tensions have significantly impacted Europe's economy, with energy prices soaring amid prolonged instability. Speaking to the European Parliament in Strasbourg, she revealed gas prices have surged 50% and oil prices 27% since the conflict began, costing EU taxpayers an additional €3 billion in fossil fuel imports over just 10 days.
The Commission is exploring emergency measures to mitigate costs, including potential gas price caps and accelerated investments in nuclear energy. A €200 million EU guarantee for private nuclear technology investments was announced Tuesday, alongside a Clean Energy Investment Strategy targeting grid upgrades and efficiency projects.
This marks Europe's second major energy shock in four years, following supply disruptions during the 2022 Russia-Ukraine conflict. EU Energy Commissioner Dan Jorgensen urged member states to reduce energy taxes, particularly on electricity, to ease household burdens.
While von der Leyen acknowledged EU efforts to diversify fuel sources since 2022, she emphasized global markets' interconnectedness: "Energy markets are global – no region is fully insulated from geopolitical shocks."
