\n<\/p>\n
(AP) \u2014 The finance ministers of Spain and four other European countries are urging the European Union to impose a bloc-wide windfall tax on energy companies, concerned that surging oil and gas prices driven by the war in Iran will fuel inflation and strain households.<\/p>\n
Spanish Economy Minister Carlos Cuerpo said Saturday that his counterparts from Germany, Italy, Portugal and Austria had signed a letter to the European Commission citing \u201cmarket distortions\u201d caused by the price spike.<\/p>\n
\u201cThe conflict in the Middle East has caused oil prices to rise, placing a significant burden on the European economy and on European citizens,\u201d the letter, dated Friday and made public by Cuerpo in an online post, said.<\/p>\n
\u201cIt is important to ensure that this burden is distributed fairly,\u201d it added.<\/p>\n
Europe is largely dependent on imported oil and gas, leaving it vulnerable to external shocks. In 2022, turmoil in energy markets following Russia\u00b4\u2019s full-scale invasion of Ukraine pushed inflation into double digits in many European countries.<\/p>\n
At the time, the EU imposed a \u201csolidarity contribution\u201d that included caps on excess energy profits.<\/p>\n \u201cGiven the current market distortions and fiscal constraints, the European Commission should swiftly develop a similar EU-wide contribution instrument,\u201d the letter said. \u201cIt would also send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public.\u201d<\/p>\n Driven largely by higher oil prices, the annual inflation rate in the 21 countries that use the euro rose to 2.5% in March, from 1.9% in February.<\/p>\n Iran has blocked most tanker traffic through the Strait of Hormuz \u2013 a chokepoint for about 20% of global oil and gas \u2013 in a move that threatens to stress fuel markets for months.<\/p>\n European Union Energy Commissioner Dan Jorgensen warned this week that disruption caused by the closure means fuel prices are unlikely to \u201cgo back to normal in a foreseeable future.\u201d<\/p>\n