EU Considers Funding Alternative Energy Infrastructure in Middle East

The EU is ready to team up with the Gulf countries to diversify export infrastructure away from solely the bottleneck of the Hormuz Strait. The EU also offered to help repair Gulf energy infrastructure damaged in the war. The Strait of Hormuz typically handles a fifth of the world's oil and gas, but the war has largely closed the waterway, leading to higher fuel prices.

Early Friday, Brent crude was up 98 cents at $100.33 a barrel. U.S. benchmark crude picked up 81 cents to $96.66 per barrel.

No specific project details or timelines were provided. An upcoming summit between the EU and the Gulf Cooperation Council will allow exploration of such projects. The informal EU leaders' meeting in Cyprus included guests such as Syrian President Ahmad al-Sharaa, Egyptian President Abdel-Fattah El Sissi, Lebanese President Joseph Aoun, Jordan's Crown Prince Hussein, and GCC Secretary-General Jasem Mohamed AlBudaiwi.

Al-Sharaa said that Europe needs Syria as much as Syria needs Europe. Aoun called on EU support for rebuilding his war-ravaged country.

European Council President Antonio Costa praised Aoun for banning the military activities of Hezbollah that he called “an existential threat” to Lebanon, pledging to assist the country in disarming the militant group. EU leaders, including German Chancellor Friedrich Merz, stated they would not lift sanctions on Iran until issues like its missile program and support for regional proxies are resolved.

“It’s too early to talk about relief of any kind of sanctions,” said Costa. The EU executive proposed enhancing defense ties and expanding the bloc's maritime security mission in the Red Sea as a potential option for the Persian Gulf.