The conflict in Iran has cost the European Union an estimated €25 billion, prompting Brussels to accelerate plans for a new trade and energy corridor through India. The proposed India–Middle East–Europe Economic Corridor (IMEC) is designed to strengthen the security of energy supplies and international trade routes.
According to the Associated Press, the EU is stepping up efforts to diversify its trade and energy links after soaring fuel prices triggered by the war in Iran. One of the bloc’s top priorities is the IMEC project, which European Commission President Ursula von der Leyen highlighted during the G7 summit as a strategic initiative to make supply chains more resilient to future crises.
The corridor would connect India, the Gulf states, and Europe through new transport, energy, and digital infrastructure, including pipelines, power networks, and logistics routes. Brussels is also exploring closer cooperation with Gulf countries to reduce Europe’s dependence on the Strait of Hormuz, one of the world’s most critical oil and gas transit chokepoints.
Von der Leyen said that during the first 54 days of the war in Iran, the EU’s oil and gas import costs increased by €25 billion. European officials also warn of potential long-term disruptions to aviation fuel and other energy supplies. In response, the EU plans to encourage European companies to invest in renewable energy projects across the Gulf region to strengthen the bloc’s long-term energy security.
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