Simon Harris warns global energy crisis has reached ‘historic proportion’

Tánaiste among European finance ministers who gathered in Brussels on Friday for a Eurogroup meeting to discuss the impact of the war in Iran

Tánaiste Simon Harris: 'Even if the conflict ended today, the damage is real, significant, and will have an impact.' File picture: Brian Lawless/PA

The global energy crisis is of “historic proportion”, with “significant damage done to energy infrastructure”, Tánaiste Simon Harris has warned.

European finance ministers gathered in Brussels on Friday for a Eurogroup meeting to discuss the impact of the war in Iran.

Escalating tensions between Israel and Iran — including strikes on each other’s energy infrastructure in recent weeks — have added fresh instability to already rising global energy markets.

In Ireland, the price of a 500‑litre fill of home‑heating oil eased slightly on Friday, dropping to €835 from €881 on Thursday.

It comes as the Government on Tuesday moved to ease pressure on motorists by cutting excise duty by 15c per litre on petrol and 20c on diesel. Additional reductions to the NORA levy bring the total cuts to 17c and 22c per litre respectively.

Despite the changes coming into effect on Wednesday, prices at garage forecourts have remained high, with diesel sitting at over €2 per litre.

Following a “stark” meeting of European finance ministers at a Eurogroup meeting in Brussels on Friday, Mr Harris warned that there is “significant global economic uncertainty, arising from ongoing conflict in the Middle East”.

The meeting featured an analysis from the International Energy Agency (IEA) on the global energy markets.

“It is now clear the current global energy crisis is of historic proportion, and that significant damage has been done to energy infrastructure,” Mr Harris said.

“Even if the conflict ended today, the damage is real, significant, and will have an impact.” 

Mr Harris said that following briefings from the European Central Bank and the European Commission, it was “clear” that the “global and EU economic outlook will be shaped by three critical factors”: The duration of the conflict, its intensity, and the “propagation of the current energy shocks”.

Mr Harris said: “While none of us can predict how current geopolitical developments will evolve, the Eurogroup will continue to work closely together at this time of great volatility.

“From an Irish perspective, we approach this period from a position of economic strength.

“Nonetheless, Ireland is not immune from the impact on the global economy. That is why the Government will continue to monitor developments closely, prepare for a variety of scenarios, whilst constantly seeking de-escalation.

“The meeting reinforced the importance of calm, co-ordinated, and responsible economic policymaking in uncertain times. That will continue to guide Ireland’s approach in the time ahead.”