Iran energy shockwaves hit Europe   – POLITICO

Now, with oil and gas prices surging once again — because of another war beyond Europe’s control — leaders are scrambling to find a response.

The price of a barrel of oil broke the $100 mark on Monday as the war in the Middle East — sparked by U.S. and Israeli strikes on Iran — entered its second week, with no clear end in sight.  

G7 finance ministers held an urgent meeting later in the day and said they “stand ready” to “take necessary measures,” including a drawdown on emergency oil reserves. But they stopped well short of committing to act. French Finance Minister Roland Lescure, who chaired the meeting, said G7 ministers had not yet agreed to make that move.

While the politicians talked, the Strait of Hormuz, a vital energy artery through which 20 percent of the world’s oil is transported, remains effectively closed by Tehran’s threats to shipping. Oil and gas production at sites in several Gulf countries has slowed down or ceased, with Iranian drones and missiles targeting energy infrastructure.    

And it’s hitting home. Across Europe, prices at the pump are already rising. The price of natural gas — the main driver of the 2022 crisis — is also surging, rising above €60 per megawatt hour on Monday. That isn’t yet near the dizzying heights of 2022, but higher than at any time since. 

“We are now seeing a regional conflict with unintended consequences,” warned European Commission President Ursula von der Leyen on Monday, in a speech to EU ambassadors, citing the effects on energy, trade and finance. “And the spillover is already a reality today.”