Ursula von der Leyen: War in Iran costs EU 500 million euros a day

Europe is losing almost 500 million euros a day as the conflict in the Middle East increases the cost of fossil fuels, European Commission President Ursula von der Leyen said.

"In just 60 days of conflict, our fossil fuel import bill has increased by more than 27 billion euros, without a single additional molecule of energy," she told the European Parliament in Strasbourg, according to the Politiko portal.

The Wall Street Journal reported on Tuesday that US President Donald Trump has ordered aides to prepare for a long-term blockade of Iran, a strategy aimed at pressuring Tehran's economy by restricting shipping traffic to and from its ports.

"Politiko" writes that such an approach risks further disrupting oil and gas flows through the Strait of Hormuz, through which a quarter of the world's oil trade passes, as well as significant quantities of natural gas and fertilizers.

Von der Leyen presented the conflict as further evidence that the European Union should accelerate the transition away from imported fossil fuels and electrify the economy more quickly.

"The path forward is clear. We must reduce our over-reliance on imported fossil fuels and increase domestic, affordable and clean energy production. From renewables to nuclear energy, with full respect for technological neutrality," she said.

Von der Leyen announced that the Commission will present an Electrification Action Plan by the summer, including an “ambitious” EU-wide target. A draft of the Commission’s agenda seen by Politico shows that the plan is now expected on June 10, along with a broader strategy to strengthen energy security.

The Commission President has again called for faster progress on the EU electricity grid package, currently being negotiated by lawmakers and member state governments, which aims to modernise infrastructure so it can accommodate more renewable energy and growing electricity demand.

She also called for closer coordination on diesel and jet fuel reserves, the release of oil stocks and refinery output, measures that are part of Brussels' broader response to the energy crisis, which the Commission presented last Wednesday.