EU warns of very high energy prices in winter due to the Middle East war

Energy prices are high given the war in the Middle East. With a view to winter, demand in Europe is likely to increase and with it prices. The EU estimates the additional costs for supply at more than 100 billion euros.

The European Union has warned of "very high" energy prices for the coming winter. "There is no doubt that we are heading into a winter that will be challenging," EU Energy Commissioner Dan Jörgensen said after a meeting of energy ministers in Dublin. "We don't expect any security of supply problems, but we do expect very high prices," he added. The head of the International Energy Agency (IEA), Fatih Birol, who appeared before the press together with Jörgensen, also spoke of a “very difficult winter”.

Energy prices have recently risen significantly again as a result of the Iran war. The federal government therefore decided to reintroduce a fuel discount from October. A fuel price cap should also be introduced by January 1st at the latest. Berlin is also considering the possibility of a direct payment to compensate for high energy prices to households with low incomes. Jörgensen said Brussels is currently “examining all ideas to make the rules more flexible.”

One consideration is therefore a postponement of their regulations for climate-damaging methane when importing oil or gas. The regulations are expected to require foreign oil and gas producers to monitor and report their methane emissions from January 1, 2027. European governments fear the threat of fines could deter suppliers from shipping fuel to Europe in the winter. The IEA could also tap into its strategic oil reserves. "We are monitoring the markets very closely, especially the product markets, diesel and others. If necessary, we will of course consult with our member governments to take the necessary steps," said IEA boss Birol.

At the same time, the EU Energy Commissioner explained that since the beginning of the war between Iran and the USA and Israel, the European community has had to raise more than 100 billion euros additionally for the import of fossil fuels. "We have now passed the mark of 100 billion euros that we have paid additionally for our energy this year, without receiving a single additional molecule of gas or oil," said Jörgensen in Ireland.

The sum makes it clear how damaging the general dependence on imported fossil fuels is for the European Union. “If prices rise on the world market, our citizens and our industry will also be affected,” emphasized Jørgensen. It is high time to replace “the imported, environmentally harmful and expensive molecules” with domestic energy.