EU Spends $113 Billion Extra on Energy Amid Iran War

The European Union has spent an additional 100 billion euros on energy imports since the start of the Iran war, driven by skyrocketing fuel prices and the closure of the Strait of Hormuz. The closure disrupted a fifth of the world's traded oil and hindered LNG loadings from Qatar and the UAE, causing some consumers to pay over $11 a gallon for fuel.

EU Energy Commissioner Dan Jørgensen urged the 27-nation bloc at a meeting in Dublin to replace imported fossil fuels with homegrown green electricity. He stated that the current reliance on foreign energy is unsustainable, noting that "times are serious." The bloc is particularly vulnerable regarding diesel, with 50% of its supply coming from the United States. This dependency is further threatened by U.S. Republicans calling for a ban on diesel exports to protect domestic supplies before midterm elections, which could jeopardize a $750 billion energy deal brokered by President Donald Trump.

As Europe enters its first full heating season since the conflict began, gas storage facilities are only 70 percent full following a cold winter and summer heatwaves. President of the European Commission Ursula von der Leyen warned that disruptions around the Strait of Hormuz cost the EU 90 billion euros in additional fossil fuel imports. In response, Germany is cutting energy taxes on fuel, France is providing a 450-million-euro assistance package, and the Netherlands is establishing a strategic gas reserve of 5 terawatt-hours.