Since the beginning of the war in the Persian Gulf on 28 February, the conflict has escalated across the region, with significant repercussions for energy prices worldwide, including in Europe — despite the bloc reporting low supply risks. European gas prices have risen by more than 50%, with electricity prices following closely, while oil prices briefly surpassed $100 per barrel before settling at around $90 on Tuesday 10 March. These developments are increasing pressure on the European Union and international organisations to provide solutions to stabilise prices and secure supply.

On 11 March, the 32 member countries of the International Energy Agency (IEA) — which include most EU Member States — unanimously agreed to release 400 million barrels of oil from their emergency reserves to address supply disruptions in oil markets stemming from the war and to ease price pressures. In total, IEA countries hold more than 1.2 billion barrels of public emergency oil stocks and around 600 million barrels of industry stocks, and have coordinated stock releases five times — in 1991, 2005, 2011, and twice in 2022.

In parallel, the EU is also seeking to coordinate its response to the emerging crisis. Ahead of a Council of the EU meeting of Energy Ministers on 16 March, and the European Council summit on 19–20 March, several EU Member States have reportedly called for additional action. They would like to see the European Commission implement EU-wide emergency measures similar to those adopted following the energy crisis triggered by Russia’s invasion of Ukraine in 2022 — namely relaxing state aid rules to allow subsidies, coordinating demand reduction, and imposing a gas price cap.

These options are currently being explored by the European Commission, as confirmed by Commission President Ursula von der Leyen during an address to the European Parliament plenary on 11 March, where she also highlighted the potential of greater use of Power Purchase Agreements (PPAs) and contracts for difference (CfDs). At the same time, the EU executive has reiterated and pledged to reinforce its long-term plans aimed at strengthening security of supply, energy resilience and affordability, which largely rely on diversifying supplies, reducing demand for fossil fuels, and accelerating the rollout of renewable energy sources.

The Citizens’ Energy Package, the latest of these initiatives, was unveiled on 10 March with the aim of making energy more affordable and accessible, in line with the European Commission’s Action Plan for Affordable Energy presented in February 2025. Among its main provisions, the package aims to reduce electricity taxes and levies for households, simplify energy markets, and facilitate the development of energy communities. It also introduces safeguards against disconnections and seeks to address structural drivers of high energy prices in order to protect vulnerable households.

In such a volatile context, EERA remains firmly committed to supporting Europe’s clean energy transition and its path towards independent, resilient and decarbonised supply chains, while continuing to highlight the pivotal role of research and innovation in bringing this transition to life in a timely and impactful manner.