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EU caught in the crosswinds after US–Israel strikes on Iran: energy, shipping and security risks surge

Brussels is urging “maximum restraint” and diplomacy — but the immediate EU exposure is economic (oil and trade routes), operational (Red Sea naval protection) and political (unity under strain).

European leaders scrambled into crisis mode today (Saturday, 28th Feb) after reports of coordinated U.S. and Israeli strikes on Iran triggered fears of a wider Middle East war — and an unavoidable question for Brussels: even if Europe did not take part, how exposed is the EU to the fallout?

The EU’s top messages have been de-escalation, civilian protection and respect for international law — a stance designed to keep channels open, protect European citizens and avoid being pulled into a conflict that could quickly spill into energy and trade shocks.

In a joint statement cited by the Associated Press, European Commission President Ursula von der Leyen and European Council President António Costa urged restraint: “We call on all parties to exercise maximum restraint, to protect civilians, and to fully respect international law.”

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EU foreign policy chief Kaja Kallas described the situation as “perilous” and said she was working with Israeli and Arab officials to pursue a negotiated peace.

The first EU impact is likely economic: oil volatility and inflation pressure

Even before any verified disruption to infrastructure, markets react to risk — and Europe remains highly sensitive to energy price spikes.

The Associated Press reported that oil markets, reopening next week, are bracing for volatility: “Oil markets… are set to see price swings next week” as the impact on Middle East supply remains unclear.

For the EU, renewed energy inflation would land at the worst political moment: governments are already balancing household pressure, industrial competitiveness, and defence spending. A sustained shock could also test Europe’s energy diversification strategy and complicate the ECB’s policy path.

At this stage, the EU’s near-term risk is market uncertainty rather than confirmed supply loss; what matters is whether the conflict threatens shipping and infrastructure in the weeks ahead.

Shipping is the EU’s strategic vulnerability — and Brussels is already deployed

Trade routes are the EU’s other immediate exposure. With instability already affecting maritime security in the wider region, the EU’s Red Sea naval mission becomes part of the story.

Only five days ago, the Council of the EU extended EUNAVFOR ASPIDES through February 2027, stating it is a maritime security operation “to safeguard freedom of navigation” and protect vessels along key routes “in accordance with international law.”

The same Council note adds that the mission monitors the maritime situation in and around the Strait of Hormuz and adjacent waters — a reminder that Europe has already been forced into a more muscular maritime posture to keep trade moving.

The EU’s angle:

If tensions widen, shipping insurance costs and rerouting could rise quickly — a “hidden tax” on European imports, manufacturing inputs, and food and consumer goods. Even without a blockade, increased threat perceptions can hit freight rates.

Europe’s political balancing act: not involved — but not indifferent

Europe’s largest powers are trying to strike a careful tone: condemn escalation, keep the nuclear file central, and avoid endorsing military action while still pressing Iran to return to diplomacy.

In a rare joint statement reported by The Guardian, the leaders of France, Germany and the UK said: “We did not participate in these strikes but are in close contact…” with partners including the United States and Israel.

The same statement urged diplomacy and warned against further escalation, saying: “We urge the Iranian leadership to seek a negotiated solution.”

This is the core European dilemma, described by AP as a quandary for Washington’s allies: EU leaders oppose Iran’s nuclear programme and repression, yet are wary of unilateral military action that could widen the conflict.

Security spillover: heightened threat environment and citizen protection

European governments will now focus on practical questions: the security of EU nationals in the region, the safety of aviation routes, and the risk of escalation involving armed groups across multiple theatres.

AP reported that European leaders held emergency meetings and took measures to protect citizens in the Middle East.
Meanwhile, the E3 statement (France, Germany, UK) condemned retaliatory attacks on regional states and warned against “indiscriminate” strikes — language that signals European fear of escalation beyond the immediate belligerents.

EU governments are preparing for contingencies — from consular assistance and evacuations to heightened domestic vigilance — because past Middle East escalations have sometimes produced indirect security consequences in Europe.

Sanctions context: Brussels’ leverage is economic — but space is narrowing

The EU enters this crisis with an already tough posture on Iran. On 29 January 2026, the Council announced fresh restrictive measures linked to human rights violations and Iran’s continued military support to Russia’s war against Ukraine, including additional listings and measures affecting UAV-related entities.

That matters because it shapes what the EU can credibly do next. Some member states will argue that escalation strengthens the case for more pressure; others will warn that maximal pressure reduces diplomatic off-ramps and pushes Iran further toward rival powers.

What this means for the EU — three scenarios Brussels is quietly gaming out

Scenario A: Short, contained exchange
Markets calm, shipping continues, and EU diplomacy focuses on preventing a return to proxy escalation. The EU’s priority becomes nuclear risk management and crisis communications.

Scenario B: Prolonged regional conflict
Oil and freight costs rise; Red Sea and Gulf shipping risks increase; EU states expand naval/air defensive planning. Domestic politics harden amid inflation pressure.

Scenario C: Maritime shock
Even partial disruption or credible threat to key routes produces immediate price spikes and supply chain friction — forcing the EU to treat maritime security as an economic-security imperative, not just defence policy. The extension of ASPIDES shows Brussels has already accepted this logic.

Bottom line: Europe’s “non-participation” won’t shield it from the consequences

The EU is positioning itself as a stabilising actor — pressing for restraint, diplomacy and protection of civilians. But Europe’s exposure is structural: it sits downstream of Middle East energy pricing and global shipping corridors while trying to hold together a unified foreign policy across 27 capitals.

Or as the EU’s own top leadership put it on Saturday, “maximum restraint” and “respect for international law” are now the minimum price of preventing a wider catastrophe.

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