Disruption in the Middle East has added more than €282bn to fossil-fuel import bills worldwide, with European economies absorbing almost €41bn in extra fossil-fuel costs without importing any new volumes, according to a report published by the Centre for Research on Energy and Clean Air (CREA). The Netherlands, Italy, France, and Spain rank among the top ten countries worst hit by these additional expenses, driven by soaring prices for diesel, petrol, and liquefied natural gas following military escalations involving the United States, Israel, and Iran.
European Economies Absorb Billions in Extra Import Costs
Across 170 examined countries, 134 paid higher prices for diesel than markets anticipated before the conflict began on 28 February, according to CREA’s findings. Between March and August 2026, extra expenditures reached approximately €11.5 billion in the Netherlands, €12.7bn in Italy, €10.8bn in France, and €8.8bn in Spain. Oil alone accounts for €140bn of the increase, while liquefied natural gas (LNG) prices jumped 60% in the Atlantic and 75% in the Pacific.
To offset shortfalls from the Middle East, the United States and Norway emerged as the largest suppliers of petroleum oils and LNG to the European Union during the first quarter of the year, based on EU trade data. The diesel shock hits the bloc particularly hard because industries, freight networks, and agricultural producers rely heavily on the fuel, transmitting higher costs down supply chains to everyday consumer goods, as reported by CREA.
Did you know?
According to the Energy Transitions Commission Secretariat, the closure of the Strait of Hormuz has disrupted 18.4 million barrels per day of oil—making it the largest supply shock on record, exceeding the 1973 Arab oil embargo.
Clean Energy Assets Cushion Price Spikes
Renewable energy deployment is cushioning the economic blow for nations with robust infrastructure, according to CREA. Throughout the initial five months of the crisis, importing countries avoided €36bn in fossil-fuel purchases thanks to clean power capacity brought online across the bloc since 2020. Every unit of gas, oil, or coal displaced by renewable electricity spared households and businesses from paying wartime market prices.
“The best way to protect against high oil prices is to get off the black stuff as quickly as possible,” said Luke Wickenden, energy analyst at CREA, noting that historical energy crises show renewables serve as a structural hedge against geopolitical shocks.
A stark contrast exists in system designs globally. Spain, which runs on 57% renewable electricity, recorded the EU’s lowest energy price increases post-Hormuz with prices sitting at $50 per megawatt-hour, according to Energy Transitions Commission data. By comparison, Singapore—relying on a 95% gas-dependent power generation grid—faced electricity prices exceeding $200 per megawatt-hour in April.
Green Groups Demand a Fossil Fuel Exit Strategy
In response to the crisis, a coalition of more than 100 European and international organizations, led by the NGO Climate Action Network Europe, addressed a letter to European Commission President Ursula von der Leyen. The signatories urged the Commission to deliver a comprehensive fossil fuel exit plan during the State of the Union address on 16 September.
“We urge you to use your upcoming address to announce the launch of a comprehensive, science-based and independent report with one clear objective: to make this fossil fuel crisis Europe’s last,” the letter states. The groups argue that Europe pays twice for its reliance: first through inflated energy bills, and second through escalating climate damage.
The coalition wants von der Leyen to commission an independent blueprint modeled after the Draghi report, shifting public and private spending toward grids, efficiency, and clean flexibility while securing critical mineral supply chains for green industries.
Frequently Asked Questions
How much has the Middle East disruption added to global fossil-fuel import bills?
Global fossil-fuel import bills have grown by upwards of €282bn as a result of the crisis according to CREA, with the rise in oil expenses alone contributing €140bn to that total.
Which European countries absorbed the highest extra costs?
Italy recorded €12.7bn in additional costs, followed by the Netherlands at €11.5 billion, France at €10.8bn, and Spain at €8.8bn, according to CREA.
How much did clean energy save Europe during the crisis?
For importing nations, newly operational clean power installations across the EU since 2020 trimmed €36bn off fossil-fuel spending throughout the first five months of the disruption.
What are green groups demanding from the European Commission?
Led by Climate Action Network Europe, more than 100 organizations are urging President Ursula von der Leyen to deliver an independent report and exit plan to phase out fossil fuels entirely.
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