Europe's heatwave drives olive oil price surge, wildfires and energy cuts

Farmers across Europe warn that extreme heat, drought and wildfires are slashing crop yields and pushing food prices higher. Olive harvests have been hit hard, prompting the French vegetable producers' association Légumes de France to forecast a further rise in olive‑oil prices that are already at record levels. Similar stress is seen in vineyards, cereals and vegetables in France, Spain and other regions, with yields expected to fall by up to 10% for grapes and 7% for sunflowers.

The heatwave is also straining energy supplies. Record‑low Danube water levels have forced Romania to divert water to the Cernavodă nuclear plant, while Hungary has cut output at its sole nuclear reactor for the first time in decades. Serbian hydro‑plants are operating at about 20% capacity, and car makers Dacia and Ford have reduced night shifts to curb electricity use. The European Union is simultaneously dealing with a migration surge at Spain’s Ceuta enclave, prompting temporary border controls by Italy.

Meteorologists warn the heatwave will peak later this week, raising the risk of additional wildfires, power outages and water shortages across the continent.