As the Middle East erupts into tension once again, developments in the region are having repercussions far beyond its borders. Represented in particular by the Strait of Hormuz—a strategic passage between Iran and Oman—this region is at the heart of global fossil fuel exports. Current disruptions in this area are already having direct consequences on energy prices worldwide.

In light of this situation, energy issues were at the center of discussions at the latest European Council. This new crisis revives memories of the shock caused by Russia’s invasion of Ukraine, which severely weakened the continent’s energy supply and triggered a sharp rise in prices that destabilized the European economy.

In this context, the EU’s energy and ecological transition, through initiatives such as the Green Deal and the carbon market (ETS), is more necessary than ever. However, these policies have also been subject to criticism: some actors call for more flexibility, or even a slowdown or halt to these reforms.

Phuc-Vinh Nguyen is Head of the Energy Centre and Senior Researcher in French and European energy policies at the Jacques Delors Institute. His work focuses on the European Green Deal and France’s role in its implementation, French energy policy, carbon markets (ETS1 and ETS2) for gas and electricity, as well as the electrification of the European economy and European electricity networks.