Iran's Revolutionary Guard declared the Strait of Hormuz closed “until further notice” on Saturday after firing on the Cyprus-flagged container ship GFS Galaxy, leaving one crew member missing. Within hours, US forces began a third round of strikes on Iran this week — burying the ceasefire agreed in June and putting a fifth of the world's oil back at risk.
Luxembourg's Chamber of Deputies on 9 July approved subsidies on motor fuel, gas, electricity and heating oil for households and businesses, part of a €432.5 million tripartite package prompted by an oil-price shock from the Strait of Hormuz. Opponents backed the aid but criticised its cost and its late start.
Luxembourg Finance Minister Gilles Roth joined Eurogroup and informal ECOFIN talks in Nicosia on 22-23 May. Ministers discussed the Commission’s Spring 2026 forecast, Middle East energy-price spillovers, housing and competitiveness, digital-euro progress, stablecoins and the long-term sustainability of public spending.
STATEC has presented a scenario on how a blockade of the Strait of Hormuz could affect Luxembourg, putting energy prices, inflation and economic planning back into focus.
Luxembourg households should see lower electricity bills in 2026, but prices remain far above pre-crisis levels because wholesale energy and replacement gas costs are still elevated.