EU shelves Russian oil ban as Iran war rattles energy markets

The proposal, due to be unveiled in mid‑April, was reportedly dropped from the agenda because of “current geopolitical developments”

The EU has put plans on hold for a complete ban on Russian oil imports, news outlets have reported. The move comes amid renewed turbulence in energy markets driven by the war in the Middle East. 
The draft law, part of the REPowerEU roadmap to phase out Russian fossil fuels by 2027, had been tentatively scheduled for April 15 but has now been removed from the European Commission’s published work calendar, Euronews and Reuters reported on Tuesday.  
An unnamed EU official was quoted as saying the delay was because of “current geopolitical developments.” Commission energy spokesperson Anna‑Kaisa Itkonen said she had “no new date to give.”  
Coordinated US‑Israeli strikes on Iran and subsequent Iranian retaliatory attacks across the region have led to the effective closure of the Strait of Hormuz to Western shipping, triggering a rally in oil and gas prices. Benchmark Brent has climbed to around $120 per barrel. The chokepoint normally carries around a fifth of the world’s daily oil supply. The IEA has warned that disruptions could potentially last months or years.  

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The EU was already grappling with the fallout from its decision to cut energy ties with Russia following the escalation of the Ukraine conflict, as well as the costs of its green transition policies. Consumers across the bloc have since faced higher fuel and power bills, adding to broader cost‑of‑living pressures. 
The price rally has prompted Washington to ease sanctions on Russian oil. Some European leaders have begun hinting at a rethink of their own. The “oil blockade” of the Druzhba pipeline by Ukraine, which had halted Russian supplies to heavily dependent Hungary and Slovakia, has exacerbated tensions within the bloc. 
The EU’s energy policies have repeatedly come under fire. Slovak Prime Minister Robert Fico has described the REPowerEU scheme as “suicide.” Hungarian Foreign Minister Peter Szijjarto has warned that unless the bloc lifts sanctions on Russian energy, it will “deal an extremely deep blow to the European economy.” 

READ MORE: EU faces energy price ‘tsunami’ – Putin envoy

Russian officials say the latest turmoil exposes deeper flaws in EU policy. Rosatom chief Alexey Likhachev told RT that the Iran war has revealed “decades” of mistaken decisions and an “oversimplified” approach to the energy transition. Kremlin envoy Kirill Dmitriev has warned of an “oil and gas price tsunami” for the EU after it rejected Russian supplies.