European Commissioner for the Economy Valdis Dombrovskis signaled that the EU is prepared to release its strategic oil reserves should the deteriorating situation in the Middle East demand it. The statement came after a meeting of EU finance and economy ministers, where the steep climb in global energy prices dominated much of the discussion.

Eurogroup President Kyriakos Pierrakakis described the current state of affairs as deeply worrying. While he acknowledged that Europe's economy has the resilience to absorb short-term shocks, he cautioned that the bloc must brace for a prolonged stretch of instability - one that could bring supply disruptions, further energy price hikes, and inflationary knock-on effects.

Dombrovskis echoed that assessment, noting that although the European economy is fundamentally sound, it is operating under conditions of extreme global uncertainty. The scale of the impact, he said, will ultimately depend on how long the conflict drags on and how intense it becomes, with stagflation emerging as a real risk over a longer horizon.

He was particularly firm on the question of Russia, warning that Europe must not allow Moscow to exploit the chaos for its own gain. Securing energy supplies and reopening the Strait of Hormuz are priorities, he said, but so is keeping pressure on Russia to prevent it from fueling its war machine. Failure to do so, he argued, would undermine Ukraine, EU solidarity, and Western allies more broadly, given that Russia and Iran are effectively operating as partners.

Dombrovskis also noted that G7 energy ministers are due to meet the following day to take up the question of releasing oil stockpiles.