Europe faces new energy crisis from Iran war as governments lack 2022 rescue funds

Rising energy prices are hitting European consumers as conflict in Iran disrupts global energy markets, similar to the 2022 crisis triggered by Russia's invasion of Ukraine. Unlike 2022, European governments face severe fiscal constraints and cannot deploy the massive financial support packages that cushioned households and businesses during the previous crisis. Energy insecurity threatens economic stability across the continent and could force difficult policy choices between supporting vulnerable populations and maintaining fiscal discipline. This divergence highlights how repeated energy shocks expose structural vulnerabilities in Europe's energy independence and government capacity to respond.