DUBLIN — The global energy crisis stems from the closure of the Strait of Hormuz and the broader confrontation with Iran, not from Ukraine's attacks on Russian refineries, according to Irish Finance Minister Simon Harris. In an interview with Euronews, Harris directly challenged recent remarks by US President Donald Trump, who had blamed Kyiv's strikes on Russian diesel facilities for the surge in oil prices, now hovering near $108 a barrel.
“The reason there's a major energy crisis in the world right now is because the Strait of Hormuz is closed,” Harris said on the programme 12 Minutes With. “I always make the point, and I would make it again today, that the greatest economic intervention we could see is de-escalation in the Middle East.”
Harris, who also serves as Tánaiste (deputy prime minister), noted that a brief lull in the conflict over the summer had provided a clear demonstration of the link. “We saw a very rapid fall in the commodity markets and therefore a benefit at the pump,” he said.
Hormuz vs. Ukraine: what's really moving oil markets
Ukrainian drone strikes on Russian oil and gas infrastructure have squeezed Moscow's output, and Russia remains one of the world's largest producers. But analysts broadly agree that the effective closure of the Strait of Hormuz — through which roughly 20% of global oil and gas supplies transit — is the dominant factor behind the current price spike. The situation escalated after Saudi Arabia shut its East-West pipeline, known as Petroline, following drone attacks by Iran-backed Houthi and Iraqi militias earlier this month.
“From an economic perspective, I'm very concerned [after] what we've seen on oil markets in recent days,” Harris said. “I'm also very concerned about the fact that we aren't seeing de-escalation; we're actually seeing an escalation and indeed more fronts in terms of complications opening up regarding energy.”
The Irish minister's comments come as finance ministers from the eurozone gathered in Dublin on Friday to discuss how to cushion the impact of rising energy costs on households and businesses. Among the measures under consideration is a windfall tax on energy companies that have profited from the volatility.
“Some energy companies are making extraordinarily large profits on the back of this energy crisis,” Harris said, adding that these gains were not the result of “being innovative” but rather “because of the chaos that we're seeing in the energy markets as a result of the Strait of Hormuz being closed.”
Ireland currently holds the rotating EU Council presidency, giving it significant agenda-setting power. Harris said he would hold initial talks with fellow ministers in Dublin and that it was “likely that we will ask the European Commission to further examine this and that we would formally discuss it in Brussels at the next formal [Economic and Finance Council] meeting in October.”
The debate over windfall taxes has been gaining traction across the bloc, with several member states calling for a coordinated approach. EU finance ministers have already weighed similar measures as prices continue to climb.
Beyond economics: a human toll
Harris stressed that the crisis is not merely a matter of markets and budgets. “I think while I'm obviously speaking in the capacity of a finance minister, we should never become numb to the loss of life in war, whether that's the loss of life in Ukraine, whether it's the horrific genocide we've seen in Gaza, whether it's a situation in the Middle East more broadly,” he said. “We need to see a de-escalation of conflict more broadly in the world.”
On the issue of Israeli settlements in the West Bank, which are illegal under international law, Harris argued for a tougher European stance. “I'm massively pro-European, but I think when it comes to Gaza, it's been disappointing, to put it mildly, that more hasn't been done at that coordinated level,” he said.
Several European countries, including Ireland and more recently the United Kingdom, have announced national bans on imports from illegal Israeli settlements. Harris said he would prefer a unified EU policy. “Member states are listening to their public and are moving ahead, but we would always rather see action at an EU level because we think it's more impactful.”
The Irish position reflects a broader unease in European capitals about the direction of US policy in the Middle East and its spillover effects on the continent's economy. French President Emmanuel Macron has called for a G7 energy summit to address the growing threats to supply chains. Meanwhile, Ukraine has said it is ready for an energy ceasefire, but Russia has not agreed.
As European leaders grapple with the twin shocks of war and energy insecurity, Harris's message is clear: the path to stability runs through the Gulf, not just the Donbas.
