European Union struggles to curb energy costs driven by Middle East war

(Patria) - Leaders from across the European Union met yesterday to grapple with rising oil and gas prices caused by a war raging in key energy producers and shipping lanes in the Middle East, AP reported.

Many of those leaders rejected pleas from US President Donald Trump to send military assets to secure the Strait of Hormuz, a key waterway for the global flow of oil, gas and fertilizer.

Rising energy prices due to the war and fears in Europe of a new refugee crisis have prompted leaders to put the Middle East at the top of the summit agenda.

"We are very concerned about the energy crisis," said Belgian Prime Minister Bart De Wever ahead of the European Council summit of 27 EU leaders. He said energy prices were already too high before the war, but the conflict had "created another jump".

"If this becomes structural, we are in big trouble," he said.

"At the European level, some measures can be taken to address the problem of high energy prices."

The European Commission told leaders it has a range of financial instruments that member states can deploy to lower energy prices, which will be up for discussion.
No single policy is likely to cushion the economic shocks caused by the war across the bloc’s numerous markets, from Romania to Ireland.

European leaders have struggled to take a firm stance on the fighting in Iran and Lebanon. While they have criticised the Iranian government, they have not offered military support.

"This is a war that the United States and Israel have started against Iran for reasons that I can understand, because the Iranian regime is brutal not only to its own people but to the wider region and poses a security threat to Europe," said Dutch Prime Minister Rob Jetten.

"But it is not a war in which we participate," he said, calling for increased sanctions on Iran and support for opposition groups.

Tags: EU, Middle East, oil, gas, Rob Jetten, Bart De Wever