FX.co ★ EU takes €90bn hit as Strait of Hormuz blockade pushes up energy costs

According to European Commission President Ursula von der Leyen, the European Union has incurred roughly €90 billion in extra costs for oil and gas after the conflict around the Strait of Hormuz, involving the United States, Israel, and Iran, intensified. The bloc did not receive additional fuel, she highlighted. The hefty bill reflects higher global prices and elevated shipping costs as tankers divert along longer, riskier routes.

As a response, EU leaders plan to accelerate the development of domestic energy supplies and reduce reliance on external sources. That strategy includes expanded solar and wind capacity, as well as investment in nuclear and biofuels. A broad electrification push is the priority, with officials aiming to double the share of electricity in the economy by 2040. The Commission estimates those measures could save the bloc up to €260 billion a year in fossil‑fuel purchases.

Market participants and analysts warn that the region still faces elevated risks. The Strait of Hormuz remains a critical artery for oil shipments, and a sustained disruption would have serious consequences. Analysts, including sources quoted by The Financial Times, say a de facto blockade would trigger prolonged supply shortfalls in Europe and the UK, raise production costs for businesses, and lead to higher prices for consumers.