G7, EU hold urgent talks as energy prices surge

Energy ministers from the Group of Seven (G7) and leaders from the European Union (EU) are set to hold emergency discussions on Tuesday as global energy prices surge amid the ongoing conflict involving Iran.

Oil prices climbed to their highest levels since mid-2022, driven by concerns about possible production cuts in the Gulf and disruptions to tanker traffic in key shipping routes. The spike has raised alarm among governments already struggling with high energy costs, News.Az reports, citing Reuters.

The G7 energy ministers will hold a call to assess the situation and discuss potential responses. Earlier, G7 finance ministers said they were prepared to take “necessary measures” to address the price surge but did not commit to releasing strategic reserves.

Even before the latest crisis, energy costs in Europe were significantly higher than in the United States and China. Ursula von der Leyen, president of the European Commission, has promised to present proposals at an upcoming EU summit aimed at reducing the burden of high energy prices on European economies.

Officials say there are currently no immediate supply shortages in Europe or the United States. Still, European countries remain highly vulnerable to price shocks because the EU imports more than 90% of its oil and about 80% of its gas.

Later on Tuesday, EU leaders will also discuss energy costs and economic competitiveness in a call involving German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, among others.

European officials are also considering possible policy changes, including adjustments to energy taxes and reforms to the EU carbon pricing system, which accounts for roughly 11% of industrial electricity costs.

News.Az 

By Aysel Mammadzada