EU to hold off on Russian oil price cap amid Middle East tensions

Two diplomats told Politico about the decision, saying the EU fears the new conflict could push oil prices higher. 

Politico notes that the proposal would have cut the oil price cap for Moscow from $60 to $45 per barrel. EU foreign ministers were set to discuss it on Monday in Brussels. However, according to the outlet’s sources, the escalation of the conflict between Israel and Iran means that the plan is no longer viable.

“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 diplomat said.

“At the G7 meeting this week, it was agreed by all the countries they would prefer not to take the decision right now. The prices were quite close to the cap; but now the prices are going up and down, the situation is too volatile for the moment,” the diplomat added.

On June 13, Israel launched a major operation called Rising Lion, hitting Iranian military and nuclear sites with heavy airstrikes. Mossad took part, using drones to destroy Iran’s air defense and missile systems.

In response, Iran fired hundreds of ballistic and hypersonic missiles at Israeli cities, including Tel Aviv, and said it was ready to escalate further.

The conflict shook the region. People began evacuating Iranian cities, the rial plunged, and Iran faced blackouts and shortages of goods.

On June 19, Israel struck Iran’s nuclear facilities again, targeting sites in Natanz and Isfahan.