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EU Delays Russian Oil Cap Cut Amid Middle East Tensions and Market Volatility
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![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
The European Union is putting on hold its plan to lower the price cap on Russian oil exports, citing fears that escalating conflict in the Middle East could trigger further volatility in global energy markets, Politico reports on June 20, citing EU diplomats familiar with the matter.
The proposal, which aimed to reduce the current $60-per-barrel cap to $45, was set to be discussed by EU foreign ministers in Brussels. However, recent developments in the Israel-Iran confrontation have cast doubt on the viability of such a move.
“The idea of lowering the price cap is probably not going to fly because of the international situation in the Middle East and the volatility,” one of the diplomats told Politico.
The diplomat noted that during this week’s G7 meeting, all participating countries agreed it would be better to hold off on making a decision for now. They explained that while oil prices had recently been close to the cap, current fluctuations have made the market too volatile to proceed.
According to Politico, at the G7 meeting in Canada, European Commission President Ursula von der Leyen acknowledged that the current price ceiling has had only a limited impact, but noted that it remains functional.
“In recent days, we’ve seen oil prices rise, and the existing cap is still doing its job. There is no strong pressure to adjust it right now,” von der Leyen stated.
Earlier, a Ukrainian family seeking life-saving cancer treatment for their seven-year-old daughter in Israel was killed when an Iranian ballistic missile hit their apartment building near Tel Aviv.
