By Edith Hancock
European Union leaders called for a de-escalation of the conflict in the Middle East as the bloc grapples with the fallout, including volatile energy prices and blocked trade routes.
Leaders of the 27 member states are meeting in Brussels for a summit originally meant to focus on the EU's competitiveness, but the war in the Middle East has cast a shadow over proceedings.
The EU is looking to address the knock-on effect on energy, with oil prices rising after Israel attacked an Iranian gas field and Iran struck a major Qatari fuel hub.
"Iran's attacks on Qatar energy infrastructure create further chaos," Kaja Kallas, the EU's foreign policy chief, said Thursday.
"It's clear that we need an exit from this war, not escalation," she said.
French President Emmanuel Macron called for de-escalation and said EU leaders would on Thursday discuss what mechanisms can be used at the European level to find flexibility in the meantime.
Belgian Prime Minister Bart De Wever called energy a "top priority" ahead of the summit, adding that Europe faces deep trouble if the jump in energy prices becomes structural.
Policymakers at the European Commission--the bloc's executive arm--have floated ideas on addressing the crisis. Commission President Ursula von der Leyen said earlier this month that the commission is looking at several measures, including subsidies or a cap on natural-gas prices.
Elsewhere, in a recent speech in Berlin, competition chief Teresa Ribera suggested that the EU's recently-adopted clean energy state-aid framework could give member states the possibility of providing short-term relief to the electricity bills of energy-intensive companies.
The crisis has again thrown Europe's dependence on other countries for energy imports into stark relief. European Council President Antonio Costa said the focus should remain on the bloc's energy transition.
"The best way to have a predictable and reliable horizon on our energy is to increase the homegrown production of energy," he said.
Several leaders brought up the bloc's emissions-trading system in their remarks, which obliges companies to pay for their greenhouse-gas emissions in a bid to nudge them toward cleaner energy. Belgium's De Wever said ETS reform is high on his agenda, while Dutch Prime Minister Rob Jetten said that without the system, Europe would be importing billions of fossil fuels from outside of the EU. Finland's Petteri Orpo called it a "cornerstone" of the EU's industrial policy.
Leaders are also reckoning with keeping sea lanes like the Strait of Hormuz open. The passage is an important shipping route for oil and fertilizers.
Speaking to reporters ahead of the meeting, German Chancellor Friedrich Merz said he would help keep sea lanes open, but only if fighting ceased.
"We can do a lot, including opening the sea lanes and keeping them clear, but we will not do that while hostilities are ongoing," he said.
Write to Edith Hancock at edith.hancock@wsj.com
(END) Dow Jones Newswires
March 19, 2026 10:56 ET (14:56 GMT)
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