The end of cheap energy. Brussels warns: this crisis will not be short-lived

We should have no illusions that the current crisis, which results in high energy prices, will be short-lived, European Commission spokeswoman for energy Anna-Kaisa Itkonen said on Wednesday in Brussels, adding that the blockade of the Strait of Hormuz has contributed significantly to this.

As Itkonen said, about 8.5% of GDP goes to the EU through Hormuz. liquefied gas (LNG) and approximately 7 percent crude oil and petroleum products, which the EU imports mainly from Iraq, Kuwait, Saudi Arabia and the United Arab Emirates. These amounts are even greater when it comes to aviation fuel and diesel oil, about 40% of which is transported through this strait from the Middle East to Europe.

– Globally, 20% of the world flows through the Strait of Hormuz. both oil and LNG, the spokeswoman said. She emphasized that the strait is therefore a critical point when it comes to energy transport, and its blockade had a serious impact on the crisis on the energy market both in the EU and around the world. – We can already predict that this crisis will not be short-lived – said Itkonen.

Before February 28, when Israel and the United States began their war with Iran, about one-fifth of the world's volume of crude oil and liquefied natural gas was transported through the Strait of Hormuz. On the night of Tuesday to Wednesday, the US and Iran agreed to a two-week ceasefire, part of which is the reopening of the Strait of Hormuz.

Kallas: The crisis in Iran has shown the need to strengthen the partnership between the EU and the Gulf countries

The crisis in Iran has proven that a stronger partnership is needed between the European Union and the Persian Gulf countries, including in the field of cooperation in the field of security and defense, EU foreign policy chief Kaja Kallas said on Wednesday in Riyadh.

Kallas, who met in Saudi Arabia on Wednesday, among others, with the local Minister of Foreign Affairs, Prince Faisal bin Farhan al-Saud, and the Secretary General of the Gulf Cooperation Council, Jasem al-Budaywi, wrote on X that such a partnership would strengthen both sides – the Union and the countries of the region.

– The crisis has proven that a stronger partnership is needed between the EU and the Persian Gulf countries – the politician noted.

The EU foreign policy chief said that the meeting with partners in Riyadh focused mainly on how to transform the two-week ceasefire between Iran and the US into a more lasting peace. – We also talked about broader regional issues – admitted Kallas.

US President Donald Trump announced on the night from Tuesday to Wednesday that he had agreed to Pakistan's proposal for a two-week ceasefire provided that Iran agreed to immediately open the Strait of Hormuz. He added that the truce would be “mutual.” According to the media, US-Iranian talks on ending the war will begin on Friday in the capital of Pakistan, Islamabad.

From Brussels Jowita Kiwnik Pargana (PAP)