Europe’s $29 billion Iran War bill is driving a scramble for new energy routes

The Iran war ‘s shock to global fuel prices has reinforced Europe’s stance that it must forge alternative trade and energy routes to the Strait of Hormuz. Here is a look at what the European Union is contemplating to bolster its energy security and minimize the impact of future conflicts as it turns to Gulf states and India. A corridor to India is one option European Commission President Ursula von der Leyen has expressed renewed interest in what is known as the India-Middle-East-Europe Economic Corridor. She told G7 leaders at this week’s summit that “alternative export routes have been created that are more resilient and offer choices” while “other routes will be built — for example, a typical one is IMEC.” IMEC is seen as potentially offering the EU greater economic resilience, supply-chain diversification and energy security to bolster the bloc’s strategic autonomy at a time when Russia shows few signs of curbing its belligerence and the U.S. chips away at strategic bonds. While the EU itself has supported IMEC through a memorandum of understanding, only a handful of its 27 member states are formal signatories. But behind the scenes, political commitment to IMEC is strong, according to a high-ranking EU diplomat who spoke on condition of anonymity because he wasn’t authorized to disclose the contents of confidential discussions. “The focus now is on translating that vision into practical implementation across its three pillars: transport and trade connectivity, energy connectivity and digital connectivity,” said the diplomat, who has participated in high-level meetings to discuss the initiative. It could involve new pipelines and transmission cables, among other infrastructure. The EU’s press office declined to provide a prospective timeline for the project. IMEC would pass through Israel and enjoys its support. Israeli Prime Minister Benjamin Netanyahu last year said he had spoken with his Indian counterpart Narendra Modi about IMEC, cal