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[INTERNATIONAL] · Saudi Arabia, EU · 4 sources

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European Union faces 90 billion euro energy cost increase from Hormuz crisis

European Commission President Ursula von der Leyen announced that the European Union has incurred 90 billion euros in additional costs for fossil fuel imports due to the ongoing conflict in the Strait of Hormuz. Speaking before the European Parliament, she noted that despite these massive expenditures, the union has not received any additional energy benefits from the situation.

To mitigate future risks, von der Leyen emphasized the necessity for the EU to accelerate the development of its own clean energy sources, specifically highlighting renewable and nuclear energy.

Simultaneously, market uncertainty has increased as Saudi Arabia reportedly notified European buyers of a suspension of oil deliveries from the port of Yanbu on the Red Sea, canceling shipments planned for late September. The Houthi movement, Ansar Allah, has claimed responsibility for attacks in the region. The Yanbu pipeline, which connects eastern Saudi oil fields to the Red Sea, has a capacity of seven million barrels per day.

Entities

Ansar Allah · Canada · European Commission · European Parliament · European Union · Saudi Arabia · Strait of Hormuz · Ursula von der Leyen

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