EU scrambles to curb energy costs as Iran war hits markets

European Union energy ministers will meet to weigh up options to curb energy costs on Monday, as officials draft emergency plans to temper the impact of surging oil and gas prices triggered by the Iran war.



The European Commission is drafting emergency measures to shield consumers from rising energy bills, examining state support for industries, cuts to national taxes, and using an upcoming revision of the EU carbon market to ease CO2 permit supply, according to EU officials familiar with the discussions. Commission President Ursula von der Leyen has said Brussels was also considering capping gas prices.



Ministers will hold closed-door talks on Monday to discuss possible measures to help alleviate price increases triggered by the closure of the Strait of Hormuz, which has upended LNG trade and caused unprecedented oil supply disruption.



Europe's reliance on imported oil and gas means it is highly exposed to global price swings and no quick fixes are expected.



"There are structural reasons why energy prices in Europe are high," said Joanna Pandera, president of Polish think-tank Forum Energii, adding that countries' different energy mixes and taxes mean prices vary significantly across the EU. "It's really hard to find one solution which fits all."