The EU has stressed the necessity of distributing economic burdens equitably, especially in times of crisis. In response to current global challenges, the European Union previously responded by introducing a “solidarity contribution,” which included measures to cap excessive energy profits.

Amidst ongoing market disruptions and tightening fiscal conditions, there’s a renewed call for the European Commission to swiftly create a similar EU-wide financial instrument. Such an approach, as outlined in a recent letter, would not only address market imbalances but also act as a statement of accountability, indicating that entities profiting from war-induced circumstances must contribute to alleviating the public’s hardship.

Economic pressures continue to mount, evidenced by the rise in the eurozone’s inflation rate. In March, inflation surged to 2.5% across the 21 countries using the euro, up from 1.9% the previous month. This increase has been largely attributed to escalating oil prices.

Compounding these issues, Iran has obstructed a significant portion of tanker traffic through the Strait of Hormuz. This strategic waterway is crucial, as it facilitates approximately 20% of the world’s oil and gas flow. The blockade poses a substantial threat to fuel markets, potentially extending the strain for months to come.

Driven largely by higher oil prices, the annual inflation rate in the 21 countries that use the euro rose to 2.5 per cent in March, from 1.9 per cent in February.

Iran has blocked most tanker traffic through the Strait of Hormuz — a chokepoint for about 20 per cent of global oil and gas — in a move that threatens to stress fuel markets for months.

European Union Energy Commissioner Dan Jorgensen warned this week that disruption caused by the closure means fuel prices are unlikely to “go back to normal in a foreseeable future.”

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