BRUSSELS — The European Commission announced a temporary state aid framework that will subsidise up to 70% of additional fuel and fertiliser costs for farmers, fishing businesses and road hauliers affected by price rises linked to the Iran war. Under the Middle East crisis temporary state aid framework, individual companies can claim up to €50,000 each between the date of announcement and 31 December with minimal paperwork.

The framework loosens state aid rules to support agriculture, fisheries including aquaculture, and transport covering road, rail, inland waterways and intra-EU short sea shipping. Energy-intensive industries including steel, chemicals and rail firms can claim up to 70% of the extra electricity cost of eligible consumption. Small hauliers, farmers and fishers can claim a fixed amount of up to €50,000 without needing to provide receipts for fuel purchases. No relief has been offered to airlines and airports regarding jet fuel under the measure, but potential future intervention has not been ruled out. Individual member states can configure the state aid they offer businesses according to local conditions.

The Commission described the METSAF as a targeted and temporary framework to address the crisis in some of the most exposed economic sectors. The EU said a light-touch approach is necessary due to problems facing small- and medium-sized businesses after cost rises since the Iran war, though the scheme raises the risk of fraud.

"Nevertheless, the recent spikes in energy prices require an immediate response. The METSAF allows for easily applicable solutions that will sustain the continuous development of core EU sectors such as agriculture, fishery and transport, by cushioning the effects of the crisis," European Commission vice-president Teresa Ribera said. "They could be the difference between 'survival or giving up' for many businesses," she added.

Fertiliser prices increased by 61% in March, and supplies of urea and fuel were choked off by the blockage of the strait of Hormuz. Assessments made in Brussels indicate that oil and gas prices would remain high for many months even if the US and Iran struck a peace deal today, with Qatar requiring two years to rebuild bombed gas plants.

TotalEnergies' net profit rose 51% in the first quarter of the year to $5.8bn. "TotalEnergies' war profits highlight our persistent dependence on fossil fuels, whose soaring prices once again benefit shareholders at the expense of consumers," said Antoine Bouhey, campaign coordinator at Reclaim Finance.