As the US-Iran conflict approaches its sixth week, the surge in energy prices due to the blockade of the Strait of Hormuz is increasingly impacting the European economy. Recent data from Eurostat earlier this week showed that the eurozone's inflation rate rose to 2.5% in March, significantly higher than February's 1.9%. This resurgence of inflation will undoubtedly add further pressure to the cost of living for European citizens. Europe's heavy reliance on imported fuel makes it highly vulnerable to the effects of Middle East conflicts on global energy prices. Market data indicates that since the US and Israel launched attacks on Iran on February 28, European natural gas prices have surged by over 70%. EU Energy Commissioner Dan Jorgensen has warned that the disruption caused by the strait's blockade means fuel prices are "unlikely to return to normal for the foreseeable future."
Against this backdrop, several European nations are showing signs of urgency. Slovakia and Hungary have stated that the EU should lift sanctions on Russian oil and gas to enhance energy security. Meanwhile, finance ministers from five countries, including Spain, Germany, and Italy, are calling for an EU-wide windfall tax on energy companies. They fear that the spike in oil and gas prices resulting from the Iran war will exacerbate inflation and strain household budgets.
Slovakia and Hungary are urging the immediate removal of energy sanctions against Russia. Slovak Prime Minister Fico stated on Saturday that the EU should end sanctions on Russian oil and gas imports, take measures to restore flows through the "Friendship" pipeline, and end the war in Ukraine to address the energy crisis stemming from the Iran conflict. Fico made these remarks following a call with Hungarian Prime Minister Orbán. Fico said the EU should resume dialogue with Russia and ensure member states can obtain needed gas and oil supplies from all sources, including Russia. Orbán also noted that he held talks with the Slovak Prime Minister on Saturday. Hungary and Slovakia are demanding that Brussels immediately lift sanctions and restrictions on Russian energy so that Ukrainian President Zelenskyy will promptly reopen the "Friendship" oil pipeline. Furthermore, plans proposing a shift away from Russian energy towards more expensive and less sustainable Brussels energy policies should be immediately dismissed.
Currently, Hungary and Slovakia are among the EU countries relatively closest to Russia. Since the US and Israeli attacks on Iran began on February 28, international oil prices have risen sharply. The conflict has disrupted shipping in the Gulf region, causing what the International Energy Agency (IEA) describes as the largest oil supply disruption in history. Central European countries, including Hungary and Slovakia, are attempting to implement measures to mitigate the impact of high oil prices on fueling costs for citizens and businesses.
Since the outbreak of the Russia-Ukraine conflict in 2022, the EU has significantly reduced imports of Russian oil and gas. Data shows that as of the fourth quarter of 2025, the EU's share of oil imports from Russia was only 1%. Hungary and Slovakia were the only two EU countries still importing Russian oil as of January 27. However, since January 27, deliveries via the Ukrainian section of the "Friendship" pipeline have been completely suspended. Ukraine attributes the interruption to Russian attacks on pipeline infrastructure within its territory, while Hungary and Slovakia accuse Ukraine of cutting power and deliberately delaying the restart. In Saturday's statement, Fico also stated that addressing the energy crisis solely at the national level is insufficient.
Five Nations' Finance Ministers Call for Windfall Tax on Energy Companies Beyond reigniting internal EU debate over sanctions against Russia due to the energy crisis, the substantial profits earned by energy companies from the war have become a target for many European officials. According to a letter to the European Commission seen by industry insiders on Saturday, finance ministers from five EU countries are jointly calling for a windfall tax on the profits of energy companies due to rising fuel prices caused by the Iran war. The finance ministers of Germany, Italy, Spain, Portugal, and Austria jointly called for the implementation of such a tax across the EU in a letter on Friday. They stated that such measures could help provide relief to consumers facing high energy prices and send a signal of "our unity and capacity to act." "This would make it possible to fund temporary relief, particularly for consumers, and curb rising inflation without placing an additional burden on public budgets," the ministers wrote in the letter. They also noted, "This would also send a clear message that those profiting from the consequences of the war must contribute their share to alleviating the public burden."
In the letter addressed to EU Climate Commissioner Wopke Hoekstra, the five finance ministers referenced similar emergency taxes imposed in 2022 to address high energy prices. They wrote, "Given the current market distortions and fiscal constraints, the European Commission should swiftly develop a similar EU-wide contribution instrument, built on a solid legal foundation." An EU Commission spokesperson confirmed receipt of the letter and is evaluating it. The spokesperson stated, "More broadly, the Commission is working closely with member states to examine possible targeted policy measures to address the energy crisis Europe currently faces." The letter did not provide details on the proposed level of the windfall tax or which companies should be targeted. The German Association of the Fuel and Energy Industry, representing refineries and gas stations, responded that the impression that companies are making improper profits is inaccurate and there is no justification for a windfall tax.
Previously, EU energy officials had also stated on Tuesday that they were considering reinstating energy crisis measures used in 2022, including proposals to cap grid tariffs and electricity taxes. Following Russia's reduction of gas supplies, the EU introduced a series of emergency policies in 2022—including an EU-wide gas price cap, a tax on energy company windfall profits, and targets to curb gas demand. EU Energy Commissioner Dan Jorgensen stated that Brussels is particularly focused in the short term on the supply of refined petroleum products in Europe, such as aviation fuel and diesel.
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