European leaders have taken action to address the rising energy prices resulting from recent conflicts in the Middle East. Attacks by the Houthis and Iraqis on the 1,200-kilometer east-west pipeline in Saudi Arabia have temporarily closed this vital route, which was designed to bypass the Strait of Hormuz. This disruption could affect up to 4 percent of global oil supply, while Saudi crude oil production in August has fallen to its lowest level in over three decades.
France and Italy's Measures Against the Energy Crisis
Meanwhile, Brent crude oil prices have recently traded above $113 per barrel. For France and Italy, both of which will hold important elections in 2027, high energy prices have become a domestic political issue, and voters are preparing to judge the purchasing power of their governments. In France, the inflation rate reached 2.7 percent in August, with energy prices being a major factor. Italy is also facing an inflation rate of 3.3 percent, heavily influenced by energy prices.
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Diplomatic and Economic Movements
Emmanuel Macron, the President of France, issued a directive on Wednesday night to "mobilize" efforts to address fuel prices, stating that France is securing oil supplies and alleviating pressure on drivers. Macron also linked energy security to diplomacy in the Middle East, emphasizing the need for alternative routes and reducing regional tensions.
In Italy, Prime Minister Giorgia Meloni has eliminated taxes on small and medium-sized vehicles, deeming this action essential for helping those who use cars daily. Meloni has urged the European Commission to consider the energy crisis as a defensive emergency and to ease financial regulations.
In Spain, the government has doubled the diesel tax from 20 cents per liter to respond to the price crisis. In Germany, Chancellor Friedrich Merz has announced that new measures will soon be introduced to mitigate the impact of fuel prices. He also spoke about the need for international coordination in this regard.
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