• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

New

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

EnergyEuropean Union
Europe

Europe’s $29 billion Iran War bill is driving a scramble for new energy routes

By
Menelaos Hadjicostis
Menelaos Hadjicostis
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Menelaos Hadjicostis
Menelaos Hadjicostis
and
The Associated Press
The Associated Press
Down Arrow Button Icon
June 18, 2026, 9:29 AM ET
ursula
IMF Managing Director Kristalina Georgieva (L) and European Commission President Ursula von der Leyen arrive for a working session on promoting economic growth with G7 leaders and G7 outreach partners, during the G7 Summit on June 17, 2026 in Evian-les-Bains, France.Anna Moneymaker/Getty Images
Add Fortune on Google for similar content.

The Iran war ‘s shock to global fuel prices has reinforced Europe’s stance that it must forge alternative trade and energy routes to the Strait of Hormuz.

Recommended Video

Here is a look at what the European Union is contemplating to bolster its energy security and minimize the impact of future conflicts as it turns to Gulf states and India.

A corridor to India is one option

European Commission President Ursula von der Leyen has expressed renewed interest in what is known as the India-Middle-East-Europe Economic Corridor.

She told G7 leaders at this week’s summit that “alternative export routes have been created that are more resilient and offer choices” while “other routes will be built — for example, a typical one is IMEC.”

IMEC is seen as potentially offering the EU greater economic resilience, supply-chain diversification and energy security to bolster the bloc’s strategic autonomy at a time when Russia shows few signs of curbing its belligerence and the U.S. chips away at strategic bonds.

While the EU itself has supported IMEC through a memorandum of understanding, only a handful of its 27 member states are formal signatories. But behind the scenes, political commitment to IMEC is strong, according to a high-ranking EU diplomat who spoke on condition of anonymity because he wasn’t authorized to disclose the contents of confidential discussions.

“The focus now is on translating that vision into practical implementation across its three pillars: transport and trade connectivity, energy connectivity and digital connectivity,” said the diplomat, who has participated in high-level meetings to discuss the initiative. It could involve new pipelines and transmission cables, among other infrastructure.

The EU’s press office declined to provide a prospective timeline for the project.

IMEC would pass through Israel and enjoys its support. Israeli Prime Minister Benjamin Netanyahu last year said he had spoken with his Indian counterpart Narendra Modi about IMEC, calling it “a very revolutionary and transformative development that we want to bring into place.”

Lianne Pollak-David, co-founder of the Israel-based Coalition for Regional Security, told a recent online briefing that U.S. leadership would be key to moving IMEC forward by helping in the normalization of relations between Israel and Saudi Arabia, an essential player in the project.

“Without normalization between Israel and Saudi Arabia, IMEC cannot be truly realized,” she said.

Saudi Arabia has said it will only normalize relations with Israel if accompanied by a clear pathway to Palestinian statehood, something Netanyahu opposes.

It remains unclear how the Iran war, launched by the U.S. and Israel and damaging to Gulf Arab countries, may influence Saudi Arabia’s thinking.

Asked about their position regarding IMEC, Saudi officials declined to comment.

Skirting Middle Eastern trouble spots is a goal

Von der Leyen has said the EU in the first 54 days of the Iran war shelled out 25 billion euros ($29 billion) more to import oil and gas while facing the risk of a longer-term jet fuel shortage.

She and European Council President Antonio Costa said during an EU leaders’ meeting in April that the bloc is “ready to team up with Gulf countries” to help set up new energy infrastructure circumventing conflict hot spots like the Strait of Hormuz.

The value of such alternatives is evident in the East-West Pipeline running across Saudi Arabia from its eastern oil fields to the Red Sea. After the Iran war started, Aramco ramped up transport to the maximum capacity of 7 million barrels of oil per day.

The leaders of G7 nations are discussing ways of financing and building infrastructure, “sometimes on the terrestrial part, that will be able to go outside of the track of the Strait of Hormuz,” French Foreign Ministry spokesperson Pascal Confavreux told The Associated Press.

Neither Von der Leyen nor Costa have provided specifics on EU-backed projects, which could also form part of IMEC. But an EU official told the AP that the bloc would encourage European companies to invest in renewable energy projects in the Gulf to supply the EU’s energy demand. The official spoke on condition of anonymity because they can’t speak about the EU’s plans publicly.

Getting the EU involved with collaborative projects in Gulf countries will take time, according to Gabriel Mitchell, an analyst with the German Marshall Fund think tank. The most likely projects in the near term are oil and gas pipelines, which have the shortest construction timeline, and subsidizing repairs at Gulf facilities that Tehran targeted during the war.

Mitchell said any new projects would need to fall in line with the EU’s green policies, which means pipelines, for example, would likely be built with future “dual-use” capabilities of transporting both gas and possibly hydrogen.

A transmission line would connect regions

Another project is the Great Seas Interconnector, an EU-backed electricity cable envisioned to stretch 1,208 kilometers (750 miles) to connect the power grids of continental Europe with EU member Cyprus and eventually Israel.

The GSI is bogged down in red tape over its financing, but its potential is significant not only for ending the energy isolation of Cyprus and Israel but also acting as an energy link to India and likewise forming part of IMEC.

Gallia Lindenstrauss, senior fellow with the Israel-based Institute for National Security Studies, hailed GSI as a “very pragmatic solution for the modern energy needs” that paves the way for the transition to green energies.

“As energy security and grid backup move to the forefront of the global agenda, this project provides a flexible platform,” Lindenstrauss said.

The U.S. is helping to foster closer energy ties among Greece, Cyprus and Israel as it sees the Eastern Mediterranean as “an increasingly important region for global energy development,” U.S. Secretary of Energy Chris Wright said last week.

Wright was in Houston to inaugurate the Eastern Mediterranean Energy Center at Rice University that aims to boost cooperation on developing natural gas deposits, U.S. liquefied national gas infrastructure and energy transportation networks in the European region.

___

Associated Press writers Sam McNeil in Brussels and John Leicester in Paris contributed to this report.

Fortune Daily breaks the traditional barrier between audience and newsroom. The show transforms Fortune’s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders. Watch here.
About the Authors
By Menelaos Hadjicostis
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Energy

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Energy

Current price of oil as of Aug. 5, 2026
Personal FinanceOil
Current price of oil as of August 5, 2026
By Joseph HostetlerAugust 5, 2026
1 hour ago
The remains of the German tugboat wreckage marked as UJ-106 in the Danube River.
Environmentwater use and conservation
Danube River’s shrinking water levels expose dozens of World War II ships
By The Associated Press and Marko DrobnjakovicAugust 4, 2026
13 hours ago
Photo of a trader and a screen showing stocks rallying
InvestingIran
Global shares rally, oil rebounds as Iran war de-escalation, yen intervention worries ease
By The Associated Press and Yuri KageyamaAugust 4, 2026
22 hours ago
Could a UN-backed plan to reopen Hormuz break the deadlock? 
NewslettersFortune Gulf Brief
Could a UN-backed plan to reopen Hormuz break the deadlock? 
By Melissa HancockAugust 4, 2026
1 day ago
Current price of oil as of August 4, 2026
Personal FinanceOil
Current price of oil as of August 4, 2026
By Joseph HostetlerAugust 4, 2026
1 day ago
As confusion reigns over Hormuz talks, Fortune gets exclusive access to a UN-backed plan to reopen the strait 
Middle EastStrait of Hormuz
As confusion reigns over Hormuz talks, Fortune gets exclusive access to a UN-backed plan to reopen the strait 
By Melissa HancockAugust 4, 2026
1 day ago

Most Popular

How Zohran Mamdani's pied-à-terre tax exposed an epidemic of 'ghost cars' instead
Personal Finance
How Zohran Mamdani's pied-à-terre tax exposed an epidemic of 'ghost cars' instead
By Catherina GioinoAugust 4, 2026
1 day ago
Bars, bowling alleys, and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
North America
Bars, bowling alleys, and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
By Catherina GioinoAugust 2, 2026
3 days ago
Ray Dalio on the AI bubble nearing 1929, 2000 levels and the lesson people always forget: 'Wealth is not the same as money'
Investing
Ray Dalio on the AI bubble nearing 1929, 2000 levels and the lesson people always forget: 'Wealth is not the same as money'
By Nick LichtenbergAugust 4, 2026
1 day ago
Forget Gen Z: People in their 70s and 80s are some of the earliest Americans to welcome physical AI into their homes and daily routines
AI
Forget Gen Z: People in their 70s and 80s are some of the earliest Americans to welcome physical AI into their homes and daily routines
By Marco Quiroz-GutierrezAugust 3, 2026
2 days ago
Current price of oil as of August 4, 2026
Personal Finance
Current price of oil as of August 4, 2026
By Joseph HostetlerAugust 4, 2026
1 day ago
Scott Bessent is using moves from his hedge fund days to prop up Japan's yen—and America's $40 trillion national debt
Economy
Scott Bessent is using moves from his hedge fund days to prop up Japan's yen—and America's $40 trillion national debt
By Mia OsmonbekovAugust 4, 2026
16 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.