Spain’s First Vice-President and Minister of Economy, Trade and Business, Carlos Cuerpo walks ahead of a cabinet meeting at Moncloa Palace in Madrid, Spain, on March 31, 2026.<\/p>\n
Violeta Santos Moura | Reuters<\/p>\n
The finance ministers of Spain and four other European countries are urging the European Union to impose a bloc-wide windfall tax on energy companies, concerned that surging oil and gas prices driven by the war in Iran will fuel inflation and strain households.<\/p>\n
Spanish Economy Minister Carlos Cuerpo said Saturday that his counterparts from Germany, Italy, Portugal and Austria had signed a letter to the European Commission citing “market distortions” caused by the price spike.<\/p>\n
“The conflict in the Middle East has caused oil prices to rise, placing a significant burden on the European economy and on European citizens,” the letter, dated Friday and made public by Cuerpo in an online post, said.<\/p>\n
“It is important to ensure that this burden is distributed fairly,” it added.<\/p>\n
Europe is largely dependent on imported oil and gas, leaving it vulnerable to external shocks. In 2022, turmoil in energy markets following Russia’s full-scale invasion of Ukraine pushed inflation into double digits in many European countries.<\/p>\n
At the time, the EU imposed a “solidarity contribution” that included caps on excess energy profits.<\/p>\n
“Given the current market distortions and fiscal constraints, the European Commission should swiftly develop a similar EU-wide contribution instrument,” the letter said. “It would also send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public.”<\/p>\n
Driven largely by higher oil prices, the annual inflation rate in the 21 countries that use the euro rose to 2.5% in March, from 1.9% in February.<\/p>\n
Iran has blocked most tanker traffic through the Strait of Hormuz \u2014 a chokepoint for about 20% of global oil and gas \u2014 in a move that threatens to stress fuel markets for months.<\/p>\n
European Union Energy Commissioner Dan Jorgensen warned this week that disruption caused by the closure means fuel prices are unlikely to “go back to normal in a foreseeable future.”<\/p>\n