Iran war adds €100b to EU energy bill

The ongoing war involving Iran has sharply increased global energy prices, pushing the European Union’s energy bill up by around €100 billion, despite the bloc receiving no additional oil or gas in return, Reuters reported.

European Energy Commissioner Dan Jørgensen said the EU had crossed the €100-billion mark in additional energy costs this year without receiving “one extra molecule” of gas or oil.

He said the surge highlighted Europe’s vulnerability to fluctuations in global energy prices.

The sharp rise in energy prices has been linked largely to disruptions around the Strait of Hormuz, a key route for global oil and liquefied natural gas shipments.

The European Commission has said the disruption has affected crude oil and major petroleum products, resulting so far mainly in higher prices rather than physical shortages for European consumers.

The higher fuel costs are affecting European households, transport companies and industries.

EU officials have warned that prolonged disruption could put further pressure on energy markets, particularly as Europe prepares for the winter season.

Lufthansa CEO Carsten Spohr said the German carrier’s additional jet-fuel costs in 2026 are expected to exceed its earlier estimate of €1.5 billion because of the continued conflict and higher oil prices.

The European Commission has been urging member states to prepare for continued market volatility and strengthen energy security.

Its analysis has warned that a prolonged disruption to energy supplies could push European gas prices significantly higher later this year.

The impact of the conflict is therefore extending beyond the Middle East, with higher energy costs feeding into inflation, transport expenses and household budgets across Europe.