The regional currency of the 27-nation bloc has fallen below $1.14, approaching its lowest point of the year, as electricity and fuel costs rise. Natural gas prices in Europe have surged past €80 per megawatt hour, the highest level since late 2022, as the fallout from the war in Iran disrupts oil and gas markets. The euro had peaked near $1.20 in August before the current downturn.

EU Energy Commissioner Dan Jorgensen told member states in a letter that the region is facing a price crisis linked to critical supply shortages. Jorgensen called on governments to urgently curb gas and power demand and ensure gas storage remains filled before the winter heating season. Additional downward pressure on the currency is linked to debt levels in France and political instability in Germany following election gains by the AfD.