EU mulls energy tax cuts, aid to cushion energy shock from Iran conflict

Saturday, 21 March 2026 00:00 - - {{hitsCtrl.values.hits}}

European Union (EU) leaders on Thursday called for temporary measures to ease the impact of rising energy prices triggered by the Iran conflict, including electricity tax cuts, lower grid fees and targeted State support.

The move comes as Europe faces renewed pressure from higher oil and gas prices following disruptions to Middle East supply routes, including the Strait of Hormuz, through which about a fifth of global oil and LNG flows.

In conclusions issued after a summit in Brussels, leaders urged the European Commission to work with member countries on short-term, targeted measures to mitigate the impact of imported energy costs, while safeguarding longer-term investment in renewables.

European Commission President Ursula von der Leyen said countries could use State aid and tax adjustments to cushion price increases, while the Commission is also exploring steps to reduce electricity taxation and improve grid efficiency.