Key facts
- The EU is facing an energy price crisis due to disruptions in oil and gas markets.
- EU energy commissioner Dan Jorgensen urged member states to consider curbing energy demand.
- Jorgensen also advised countries to sustain gas storage injections for the upcoming winter.
- The European Commission proposed AccelerateEU in April 2026 to coordinate responses and protect consumers and businesses.
- The Middle East crisis Temporary State aid Framework (METSAF) was adopted to support affected sectors.
- The closure of the Strait of Hormuz in early 2026 caused a sharp rise in European energy prices.
The European Union is facing a significant energy price crisis, driven by disruptions in oil and gas markets, according to EU energy commissioner Dan Jorgensen. In a letter to EU energy ministers, Jorgensen stated that the bloc is experiencing a "price crisis linking to a supply crisis" and urged member states to consider measures to curb energy demand and continue efforts to fill gas storage facilities ahead of winter.
While the EU has improved its energy security since the 2021 crisis when Russia curtailed gas supplies, Jorgensen emphasized the need for continued preparations. The European Commission, in response to global market disruptions, proposed AccelerateEU in April 2026. This initiative aims to enhance EU coordination with energy providers and partner countries, protect consumers and businesses from price peaks, reduce reliance on oil and gas, promote electrification, and boost investments. AccelerateEU also calls for closer coordination on gas storage, potential oil stock releases, and the use of flexibilities to prevent shortages. It includes temporary measures like state aid for sectors most exposed to price spikes, such as agriculture, fishery, transport, and energy-intensive industries, through the Middle East crisis Temporary State aid Framework (METSAF), valid until December 31, 2026.
Additionally, the Commission has allowed Member States to extend the National Escape Clause for defence to include certain energy security measures until 2028. A new Fuel Observatory will be established to monitor transport fuel markets, enabling swift identification of potential shortages and ensuring balanced distribution during emergencies. The EU has diversified its oil and gas supplies, moving away from overreliance on a single supplier, and has confirmed no immediate security of supply concerns for winter 2026-2027, with storage targets remaining achievable.
The sudden disruption of oil and gas supplies following the closure of the Strait of Hormuz in early 2026 intensified inflationary pressures, raised transport and food costs, and increased the risk of energy poverty. In response, EU governments and Norway introduced over 125 policy interventions, according to a Eurofound analysis. These measures included sectoral interventions like electricity price caps, energy vouchers, lower tariffs for low-income households, and subsidies to energy providers. Many countries also reduced or suspended fuel excise duties or capped pump prices. Demand-side management measures focused on lowering consumption through subsidies for energy-efficiency upgrades and incentives for electric vehicles. Supply-side shifts included renewable energy schemes and efforts to accelerate the transition to cleaner energy sources.