Closure of Strait of Hormuz Has Cost Europe €127 Billion, von der Leyen Warns of Further Price Rises
The closure of the Strait of Hormuz and rising prices for oil and natural gas have cost Europe an extra €127 billion, European Commission President Ursula von der Leyen said. According to von der Leyen, European countries are now paying much more for imported fossil fuels, but without receiving any additional energy in return. The ongoing energy crisis has once again raised questions about the European Union’s heavy reliance on imported raw materials.
Von der Leyen made her remarks on Tuesday, 3 November 2026, in Brussels. She also warned that conflict in the Middle East could escalate further, bringing new complications for global energy markets.
Europe Pays €127 Billion More for Energy
The European Commission President highlighted the economic consequences of restricted shipping through the Strait of Hormuz. She stressed that higher fossil fuel prices are putting enormous extra pressure on the European economy.
Europe now has to pay more for imported oil and natural gas, without any increase in the actual amount of energy supplied.
Von der Leyen underlined that the current situation demonstrates the risks associated with dependence on fossil fuels. If a major transport route is disrupted or a military conflict erupts in an area vital to the energy sector, the impact is quickly felt in the prices consumers and businesses face across Europe.
Similar concerns were recently voiced by German Chancellor Friedrich Merz, who noted that European businesses and consumers have paid over €100 billion more due to higher energy costs.
The Strait of Hormuz: Critical for Global Energy
The Strait of Hormuz, located between Iran and Oman, connects the Persian Gulf with the Gulf of Oman. It is among the most important sea routes for international trade in oil and liquefied natural gas (LNG).
Before the outbreak of war between the United States and Iran, about one-fifth of the world’s maritime shipments of oil and LNG passed through this waterway. Its closure has affected not only Middle Eastern nations, but also purchasers in Europe and Asia.
With much of the world’s energy supplies traveling by sea, any disruption of the route creates uncertainty for traders, shipping companies, and buyers. The market reacts to the threat of supply shortages, and the increased risk is immediately reflected in prices.
Iran Conflict Fuels Oil and Gas Price Surge
The current energy situation is linked to the war between the United States, Israel and Iran that broke out at the end of February 2026. Hostilities have dramatically worsened the security environment in the Persian Gulf region.
After the conflict began, Iran effectively restricted shipping through the Strait of Hormuz and began attacking the energy infrastructure of neighboring countries. Fears of further supply disruptions have pushed the prices of oil and natural gas even higher.
The tension is not confined to the strait itself. Military operations, sanctions, diplomatic negotiations, and threats of further escalation are all having a direct impact on the crisis.
We have also reported on the progress of negotiations and Iran’s demands in the article “Iran Warns of Harsh Retaliation. Diplomatic Talks Continue Despite Tensions.”
Brussels Warns of Risk of Further Escalation
Speaking in Brussels, von der Leyen also pointed to the possibility of the Middle East conflict deteriorating once again. Her comments followed an American attack on Iran’s Qeshm Island, which is located in the Strait of Hormuz region.
Washington described the operation as a defensive step to protect American military capabilities in the region. However, the situation remains tense and further developments could affect both the safety of maritime shipping and energy prices.
US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu have also threatened renewed strikes on Iran. Trump, however, denied that he was planning to attack Tehran after the US congressional elections.
Diplomatic efforts to resolve the crisis continue at a time when global energy markets remain highly sensitive to any new information from the region.
Energy Dependence Becomes an Economic Risk
The European Commission is using the current situation to make the case for reducing dependence on fossil fuels. Importing oil and gas not only brings direct costs for the resources themselves, but also exposes Europe to price shocks it cannot directly control.
If supplies are disrupted anywhere in the world, households and businesses across the continent can feel the consequences.
For this reason, the EU has long promoted the development of renewable energy, diversification of suppliers, and investment in energy infrastructure. The aim is to decrease the vulnerability of the European economy to geopolitical crises.
Recent events also show that a broader network of suppliers does not fully shield Europe from global price swings. Since the continent buys its energy on the international market, supply outages and scarcity fears are felt across regions.
Reopening the Strait Could Ease Pressure on Energy Markets
Restoring safe and regular maritime transit through the Strait of Hormuz could ease uncertainty in energy markets. However, reopening the route does not guarantee an immediate return to pre-conflict price levels.
Restoring trust among shipping companies, insurers, and traders will be crucial. The stability of any truce and assurances that vessels will not be attacked are equally important.
In recent days, Iran has outlined terms under which it would agree to resume shipping. We previously reported on this in the article “Iran Offers to Reopen Strait of Hormuz Within 48 Hours if US Makes Concessions.”
Until a stable agreement is reached, Europe will remain exposed to further price swings. The €127 billion figure cited by the European Commission President illustrates just how costly the consequences of a conflict thousands of kilometres away can be for European households.
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This article was translated from the original Slovak version with the assistance of AI.
