EU Energy Commissioner Warns of Prolonged High Oil Prices Amid Iran Conflict

European Union energy commissioner warns that oil and gas prices will remain high due to the ongoing Iran war, regardless of an immediate peace declaration. While supply shortages are not immediate, high electricity prices persist. EU plans measures to assist families and businesses, urging coordinated member state actions.

Amid the ongoing conflict in Iran, the European Union faces sustained high oil and gas prices, a trend unlikely to reverse soon even if peace is achieved, according to Dan Jorgensen, the EU's energy commissioner. Despite no immediate supply shortages, the pressure on diesel and jet fuel supplies and rising electricity prices are significant concerns.

Jorgensen emphasized the need for the EU to implement measures that can alleviate the financial strain on families and businesses. Initiatives include decoupling gas prices from electricity, tax reductions on electricity, and contemplating a windfall tax on companies benefiting from price hikes. The EU's spending on fossil fuel imports has increased by 14 billion euros since the war's onset.

The EU remains committed to reducing dependence on Russian gas, which previously constituted 45% of supplies but has now decreased to 10%. Efforts are underway to source energy from other countries like Azerbaijan, Algeria, and Canada. Jorgensen stressed avoiding past mistakes and ensuring no indirect financial support of the conflict in Ukraine.

(With inputs from agencies.)