Finance ministers from five European Union countries have called for caps on energy companies' profits amid a sharp rise in oil and gas prices due to the war in Iran, fueling growing concerns about inflation and increasing the burden on European households. The Spanish Minister of Economy, Carlos Cuerpo, stated that his counterparts from Germany, Italy, Portugal, and Austria have signed a joint letter to the European Commission, pointing out market distortions caused by the significant jump in energy prices. The letter emphasized that the rise in oil prices places a heavy burden on the European economy and its citizens, stressing the need for a fair distribution of this burden. The European Union had already imposed a solidarity contribution in 2022, including limits on excess profits for energy companies, following market disruptions caused by the war in Ukraine. The ministers urged the creation of a similar EU-level tool as soon as possible, stating that it would send a clear message that entities profiting from the consequences of wars must contribute to alleviating the burden on citizens. According to recent data, the annual inflation rate in the Eurozone area rose to 2.5% in March, compared to 1.9% in February, driven mainly by rising oil prices. In turn, Iran's steps to shut down most oil tanker traffic through the Strait of Hormuz, through which about 20% of global oil and gas supplies pass, have increased pressure on energy markets, with disruptions expected to continue for several months.
