Europe’s new energy crisis bill surpasses $28 billion as Iran war bites

The European Union has unveiled a series of emergency measures to mitigate the economic damage caused by soaring energy costs, as the war in Iran continues to disrupt global fuel supplies. The European Commission announced on Wednesday that Europeans are paying the price for their dependence on imported fossil fuels for the second time in five years. Since the war began on Feb. 28, the bloc has spent an additional €24 billion ($28 billion) on energy imports due to higher prices—without receiving a single additional unit of energy. That translates to over $587 million in extra costs per day.

Aviation and industry under threat

The International Energy Agency and ACI Europe have warned of potential jet fuel shortages in the coming weeks, as Europe imports about 70% of its jet fuel needs. ACI Europe Director General Olivier Jankovec called for the urgent suspension of aviation taxes to soften price impacts. Lufthansa Group has already canceled 20,000 flights until October to reduce jet fuel costs. In the chemical sector, BASF—one of the world’s largest producers—has raised prices by more than 30% on various products. Germany’s Chemical Industry Association predicts further plant closures and layoffs due to insufficient orders and profitability issues.

Fisheries, food, and UK inflation

Many European fishermen have halted operations due to rising fuel costs, prompting the European Commission to activate a crisis mechanism for direct financial support. In the UK, inflation rose in March alongside fuel prices, with increases in food costs and airfares. Fuel theft at petrol stations has also increased. Economists warn that the current crisis is only the first wave of the energy shock, with price pressures on plastics and fertilizers not yet fully felt. UK Energy Secretary Ed Miliband has proposed installing solar panels on schools and expanding renewable energy projects on public land.