EU Energy Ministers to Coordinate Response to Iran War Market Fallout

The meeting is scheduled for Tuesday via video conference and will focus on assessing recent developments in energy markets and identifying areas where stronger coordination at the EU level is needed, the news agency reported.

"Ministers are invited to share their assessment of recent energy markets development, identify areas where stronger coordination at EU level would be needed, indicate which concrete measures could be put in place to address the tightening of the oil and gas markets in a coordinated manner," said the document, seen by Reuters.

EU energy ministers are expected to convene at 1 pm (GMT) to deliberate on possible joint measures to stabilise markets and ensure energy security across member states, Reuters reported.

According to a report by ING Bank, European gas prices are unlikely to surge to the extreme levels seen in 2022, as the region is now better positioned to handle energy shocks compared to the early phase of the Russia-Ukraine conflict.

The report stated, "We do not believe European gas prices will trade to the peaks seen in 2022; global gas markets are relatively better supplied, while a large pipeline of LNG export capacity is coming onto the market in the years ahead."

It noted that despite the relatively improved supply outlook, natural gas continues to play a critical role in electricity pricing in Europe. Under the marginal pricing system, the most expensive source of power, usually natural gas, sets the electricity price. As a result, even moderate increases in gas prices can still lead to a surge in electricity costs.

The report highlighted that Europe has significantly expanded its renewable energy capacity since the 2022 crisis. Installed solar and wind capacity surged by 57 per cent between 2021 and 2024, with estimates suggesting a further 15 per cent increase in 2025.

Meanwhile, US President Donald Trump said he's optimistic about a deal with Iran, citing "very good negotiations" and Iran allowing 20 oil tankers to pass through the Strait of Hormuz as a "sign of respect".

Speaking to reporters aboard Air Force One en route to Joint Base Andrews, Trump said, "I do see a deal in Iran, yeah. Could be soon."

"So we've had very good negotiations today with Iran, getting a lot of the things that they should have given us a long time ago. See how it works out, but they're very good, moving along very nicely. And they've destroyed a lot of additional targets today. The Navy's gone, the Air Force's gone, we know that. We've destroyed many, many targets today. It was a big day. And we are negotiating with them directly and indirectly," he said further.

- ANI