EU Plans Funding for Middle East Energy Routes to Bypass Hormuz

NICOSIA, Cyprus — The European Union announced plans Friday to fund alternative energy infrastructure projects in the Middle East, aiming to bypass conflict zones such as the Strait of Hormuz amid disruptions caused by the ongoing Iran war.

European Commission President Ursula von der Leyen made the pledge during a news conference following an informal summit of EU leaders in Cyprus, the current holder of the rotating EU presidency. The initiative seeks to partner with Persian Gulf countries on new routes for oil and gas exports that avoid geopolitical risks. "The events of the past month have taught us a hard lesson," von der Leyen said. "Our security is not just related, it is intrinsically linked. A threat to a merchant vessel in the Strait of Hormuz is a threat to a factory, for example, in Belgium."

The war has largely closed the Strait of Hormuz, through which about one-fifth of the world's oil and gas normally flows, leading to a global fuel shortage and sharp price increases. Brent crude oil rose 98 cents to $100.33 a barrel early Friday, while the U.S. benchmark gained 81 cents to $96.66. Von der Leyen noted that the 27-nation bloc's energy costs have surged by 25...