Europe is confronting a stark energy crisis born from geopolitical conflict, spending an additional 25 billion euros—or $29 billion—on oil and gas imports in just the first 54 days of the Iran war. The disruption has forced policymakers across the continent to confront a fundamental question: how can the EU reduce its exposure to Middle Eastern volatility and the risks posed by chokepoints like the Strait of Hormuz?
The answer emerging from Brussels and G7 capitals involves a multi-faceted strategy centered on diversifying energy routes, infrastructure investment, and closer economic ties with Gulf states and India. European Commission President Ursula von der Leyen told G7 leaders at this week's summit that "alternative export routes have been created that are more resilient and offer choices" and that "other routes will be built."
The Strategic Pivot: IMEC and Regional Cooperation
At the center of Europe's energy strategy is the India-Middle-East-Europe Economic Corridor, or IMEC—a project designed to create alternative pathways that bypass conflict zones. Von der Leyen has renewed interest in IMEC, describing it as essential to the EU's "strategic autonomy at a time when Russia shows few signs of curbing its belligerence and the U.S. chips away at strategic bonds."
The EU has supported IMEC through a memorandum of understanding, though only a handful of its 27 member states are formal signatories. A high-ranking EU diplomat, speaking on condition of anonymity, explained that "the focus now is on translating that vision into practical implementation across its three pillars: transport and trade connectivity, energy connectivity and digital connectivity." The implementation could involve new pipelines and transmission cables, among other infrastructure.
IMEC would pass through Israel, which has signaled strong support. Israeli Prime Minister Benjamin Netanyahu previously described it as "a very revolutionary and transformative development." However, the corridor's success depends on regional cooperation that remains uncertain. Lianne Pollak-David, co-founder of the Israel-based Coalition for Regional Security, stated that "without normalization between Israel and Saudi Arabia, IMEC cannot be truly realized." Saudi Arabia has conditioned normalization on a clear pathway to Palestinian statehood—a position Netanyahu opposes. Saudi officials declined to comment on their position regarding IMEC, leaving significant questions about the project's viability.
Immediate Infrastructure Solutions
While longer-term projects like IMEC develop, Europe is pursuing nearer-term alternatives. The East-West Pipeline across Saudi Arabia, which transports oil from eastern fields to the Red Sea, has become a model. Following the Iran war's outbreak, Saudi oil company Aramco ramped up transport through this route to its maximum capacity of 7 million barrels of oil per day—a direct response to the disruption of traditional shipping lanes.
French Foreign Ministry spokesperson Pascal Confavreux noted that G7 leaders 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."
The Green Energy Dimension
An EU official indicated that the bloc would encourage European companies to invest in renewable energy projects in the Gulf to supply the EU's energy demand. Gabriel Mitchell, an analyst with the German Marshall Fund think tank, cautioned that collaborative projects would take time. He noted that "the most likely near-term projects are oil and gas pipelines, which have the shortest construction timeline, and subsidizing repairs at Gulf facilities that Tehran targeted during the war."
Crucially, any new projects must align with the EU's green policies. Mitchell explained that "pipelines would likely be built with future dual-use capabilities for transporting both gas and possibly hydrogen," reflecting Europe's commitment to transitioning away from fossil fuels even as it addresses immediate energy security needs.
The Great Seas Interconnector
Another major initiative is the Great Seas Interconnector, an EU-backed electricity cable envisioned to stretch 1,208 kilometers to connect the power grids of continental Europe with EU member Cyprus and eventually Israel. The project remains bogged down in financing red tape, but its potential is significant for ending energy isolation and facilitating the transition to green energies.
Gallia Lindenstrauss, senior fellow with the Israel-based Institute for National Security Studies, called the project a "very pragmatic solution for the modern energy needs" that advances the transition to renewable energy. She noted that "as energy security and grid backup move to the forefront of the global agenda, this project provides a flexible platform."
U.S. Role in Regional Energy Ties
The United States is actively supporting these efforts. U.S. Secretary of Energy Chris Wright recently inaugurated the Eastern Mediterranean Energy Center at Rice University, which aims to boost cooperation on developing natural gas deposits and energy transportation networks in the region. Wright described the Eastern Mediterranean as "an increasingly important region for global energy development."
Why This Matters:
Europe's energy crisis reveals the structural vulnerability of relying on energy sources routed through geopolitically volatile regions. The continent's 25 billion euro additional spending in the first 54 days of conflict demonstrates how quickly market disruptions translate into massive costs borne by consumers and governments. The EU's pivot toward diversification and infrastructure investment reflects a recognition that energy security requires collective action, institutional coordination, and investment in alternatives—not market forces alone. However, the success of these initiatives depends on regional political cooperation that remains fragile and uncertain. The tension between immediate energy needs and long-term climate commitments also underscores a fundamental challenge: Europe must secure energy supplies while transitioning to renewables, a balance that requires substantial public investment and international coordination.