EUROPE FACES €100 BILLION ENERGY BURDEN AS HORMUZ CRISIS DISRUPTS FUEL MARKETS

September 29, 2026

European Union countries have incurred more than €100 billion in additional energy costs since the conflict involving Iran began, as disruption around the Strait of Hormuz has driven up the price of oil, gas and refined fuels. The figure is equivalent to roughly $113 billion and highlights the financial impact of the prolonged disruption to one of the world’s most important energy routes.

EU Energy Commissioner Dan Jørgensen said the additional expenditure had not resulted in a corresponding increase in energy supplies, with higher prices instead increasing the cost of imports. Some European countries have experienced fuel-price increases of almost 50 percent as energy markets respond to uncertainty surrounding supplies and shipping through the Gulf region.

The crisis has intensified concerns about Europe’s dependence on imported fossil fuels. European governments are examining measures to reduce energy demand, increase gas storage, expand electrification and accelerate the development of domestic renewable-energy capacity ahead of the winter season.

The European Union has also become increasingly dependent on the United States for diesel supplies after reducing its reliance on Russian energy following Russia’s invasion of Ukraine. US diesel exports currently account for a substantial share of European supplies, creating additional concerns over possible disruptions to transatlantic fuel shipments.

The energy shock has also affected importers beyond Europe. An independent analysis estimated that fossil-fuel importers worldwide paid hundreds of billions of dollars more than previously expected during the first six months of the crisis, with the EU among the regions bearing the largest additional costs.

As the Hormuz crisis continues, European governments face the challenge of maintaining adequate fuel supplies while containing costs and strengthening longer-term energy security. The disruption has renewed attention on alternative energy sources and the vulnerability of economies heavily dependent on international fossil-fuel markets.