Spain Leads Push for EU Windfall Tax on Energy Firms Profiting From Iran War

Five EU Nations Sign Joint Letter

Spain and four other European Union nations have called for a windfall tax on energy companies profiting from soaring fuel prices driven by the Middle East war.

The request was made in a letter addressed to EU Climate Commissioner Wopke Hoekstra, signed by Spanish Economy Minister Carlos Cuerpo along with the finance ministers of Austria, Germany, Italy and Portugal.

Cuerpo said such a measure would "ease the burden on consumers and taxpayers."

'Those Who Profit Must Do Their Part'

In the letter, dated Friday, the five ministers argued that a windfall tax "would also send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public."

Oil and gas prices have surged since US-Israeli strikes on Iran began on February 28, resulting in Iran effectively blocking the strategically vital Strait of Hormuz and damage being done to Gulf energy infrastructure.

Although the EU sources most of its oil and gas from regions other than the Gulf, high global prices are still affecting businesses and households across the bloc — including in Spain, where fuel and energy costs feed directly into the cost of living for residents and expats alike.

Echoing the 2022 Ukraine Emergency Tax

The ministers noted that a similar emergency tax was implemented in 2022 to address soaring energy prices following Russia's invasion of Ukraine.

"Given the current market distortions and fiscal constraints, the European Commission should swiftly develop a similar EU-wide contribution instrument grounded on a solid legal basis," they wrote.

The letter did not specify the proposed level of the windfall tax or which companies would be affected — but the direction of travel is clear: Europe's largest economies want energy companies to share the burden rather than pocket record profits while consumers struggle.

What This Could Mean

If the European Commission acts on the request, it could lead to an EU-wide levy on excess profits made by oil, gas and energy companies since the conflict began. The 2022 precedent saw the EU impose a temporary "solidarity contribution" on fossil fuel companies whose profits exceeded 120% of their average taxable profits from the previous four years.

Any revenue raised would likely be directed towards shielding households from further energy price rises — a measure that would be welcomed by the millions of people across Europe, including expats in Spain, feeling the squeeze from rising costs.

This article is based on reporting from The Local Spain, published April 4, 2026. This article is for informational purposes only and does not constitute financial advice.