The energy crisis and subsequent price hikes caused by the Iran war could last for months, if not years, according to the European Union’s top energy official.
EU Energy Commissioner Dan Jørgensen said on Wednesday this is “not a short-term” issue as he spoke to reporters at a press conference.
“This is a crisis that is probably as serious as the 1973 and the 2022 crises combined,” he said.
Jørgensen added the war is costing Europe around 500 million euros (£434m) each day and that “we are looking into some very difficult months, or maybe even years” ahead.
“Even in a best-case scenario, it’s still bad,” he told reporters.
The comments come as UK inflation hit 3.3% in March, mainly thanks to higher fuel prices triggered by the conflict, according to the Office for National Statistics (ONS).
The higher cost of motor fuel was the main driver of the acceleration in inflation, after it increased by 8.7% month-on-month.
It is the largest increase since June 2022, when fuel prices spiked shortly after Russia’s invasion of Ukraine.
The rate of inflation is up from 3% in February, and the figures are the first to be released since the US and Israel attacked Iran on February 28.
The March rate is the highest since December.
Responding to the figures, Chancellor Rachel Reeves said: “This is not our war, but it is pushing up bills for families and businesses. That’s why it’s my number one priority to keep costs down.”
She pointed to cuts in energy bills and the freezing of rail fares and fuel duty as examples of how the UK government had helped the public.
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