Writer:Salima Aryaei
According to a report from the “Bruegel” think tank, European Union member countries have so far spent approximately €10.4 billion to mitigate the effects of the conflict between Iran and other regional actors on the energy market. The report attributes this amount to a period during which the energy market faced significant fluctuations.
The report states that a large portion of these expenditures was used for financial and supportive measures to control rising energy prices and reduce pressure on the economies of European countries. The main goal of these policies is identified as managing the economic consequences resulting from instability in the energy market.
Sources mentioned in the report emphasize that disruptions in ship traffic in the Strait of Hormuz have been a major factor in the increase of costs. This situation has directly impacted the flow of energy transmission and international transportation.
The reports also indicate that these disruptions have caused the disruption of the supply chain for fuel, energy, and certain essential goods, such as petrochemical products and chemical fertilizers, on a global scale. This has led to an increase in concerns in international markets.
In another part of the report, it is stated that these developments have caused instability in global markets and forced European governments to intervene financially and adopt supportive policies. Meanwhile, Iranian officials have previously announced that in the event of a lasting ceasefire, they are ready to guarantee the security of shipping in the Strait of Hormuz—a topic that has previously been considered one of the key factors for stability in the global energy market.
