The European Commission has approved a fuel aid plan for commercial fishers proposed by Portugal to offset the high prices caused by the war on Iran.
The U.S. war on Iran, which launched in February, immediately led to the closure of the Strait of Hormuz, the thoroughfare for oil being shipped out of the Gulf of Persia. With much of the Middle East’s oil production blocked by the closure, fuel prices have jumped. Despite several announcements from U.S. President Donald Trump that the strait was open or that a deal with Iran was imminent, the waterway has remained effectively closed to traffic.
The higher prices had a major impact on commercial fishers, for whom most fuel is the number one operating cost. To offset the financial impact, the European Commission has authorized member states to provide monetary aid to commercial fishing and aquaculture businesses, as well as some other sectors hit hard by the high prices. Approved in April, the Middle East Crisis Temporary State Aid Framework (METSAF) set guidelines for what level of aid member states can provide.
“While the transition towards a clean economy remains the long-term solution to shield E.U. companies from the effects of global energy shocks, the METSAF allows Member States to act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis,” the commission stated.
The commission previously approved fuel aid plans proposed by Spain, France, Croatia, Ireland, Sweden, Malta, Germany, and the autonomous region of Friuli Venezia Giulia in Italy, and Italy.
Now, the commission has approved Portugal’s plan, which will provide EUR 30 million (USD 34.8 million) for agricultural, fishery, and aquaculture companies. As with other plans, the aid will be delivered via direct grants with a limit of EUR 50,000 (USD 57,919) per company. Commercial fishers will be able to receive EUR .10 (USD .11) per liter of marine diesel consumed from 1 April to 30 June 2026.
