The European Commission has warned member states to curb oil demand and prepare for prolonged energy disruption as the Iran conflict threatens global supplies, with European inflation already breaking through the European Central Bank's 2% target to reach 2.5% in March on soaring energy costs.
The warning echoes the 2022 energy crisis following Russia's Ukraine invasion and threatens Europe's fragile economic recovery. However, this time Europe is refusing to support the American military operation that triggered the crisis, creating a strategic contradiction at the heart of the transatlantic alliance.
Brent crude oil prices reached $127 per barrel on Monday, the highest level since 2022, driven by the closure of the Strait of Hormuz and fears of wider Middle East instability. Approximately 21% of global petroleum consumption transits the strait, and its effective closure has removed millions of barrels per day from international markets.
