BRUSSELS — The European Union should loosen its “rigid” adherence to climate neutrality and allow itself to miss its 2050 net-zero goal by up to 10 percent, Germany’s minister for energy and economy told a major oil and gas conference in the United States. Speaking at the annual CERAWeek conference in Texas late Monday, Katherina Reiche called the EU’s goal to slash its planet-warming pollution to net zero by mid-century into question. Europe, for a long time, “had left a corridor, there wasn’t a net-zero … it was, for Europe, a goal [to reduce emissions] between 85 and 95 percent,” she claimed, likely referring to a non-binding European Commission roadmap from 2011. “There is a flexibility we have to get back, accept not 100 percent solutions but allowing different solutions and technologies and accept that there might be a gap of maybe a 5 or 10 percent by 2050,” she added. “If you have strict and rigid goals, you bind yourself, it ends up that you lose industries that you need … and we can’t afford that we lose our energy-intensive industries in Europe and in Germany.” Reiche’s comments mark a rare departure from the EU consensus. The bloc set itself a net-zero by 2050 goal in 2019, with only Poland not formally committing to the new milestone. Last year, EU governments agreed on an intermediate target to slash the bloc’s emissions by up to 90 percent by 2040. Germany has set itself even stricter goals, aiming to become climate neutral by 2045. Throughout her remarks at CERAWeek, Reiche stressed that economic growth must come before green targets. “At the end of the day, it is good to have a goal of sustainability — but if sustainability crashes your economy, you have to readjust,” she said. “And that’s what we’re doing right now.” In Germany, Reiche has in recent months unveiled plans to build out gas power plants, scrap the previous government’s gas boiler phaseout, remove subsidies for rooftop solar panels, and deprioritize the connection of renewables from the country’s power grid. She also told the Texas audience that Germany should drill for fossil fuels in the North Sea, saying: “We have a gas field in the North Sea, which we don’t want to explore. I think we can’t stick to this attitude. We have to also go into our own reserves.” And she insisted: “I am not speaking against sustainability, and not against a climate target. But if a climate target ignores other things you have to think of, especially affordability and abundance … you have to change course.” Mike Lee contributed to this report from Texas.

The European Union and Australia have concluded talks on a free trade deal that could boost export volumes by as much as one third, European Commission President Ursula von der Leyen announced in Canberra. Von der Leyen shook hands on the agreement with Prime Minister Anthony Albanese Tuesday, on the second of her three-day visit to Australia — finally sealing the accord after a previous attempt collapsed amid acrimony in 2023.  The Commission president told the Australian parliament the trade deal was necessary to build resilience to economic shocks.  “None of us is immune to the shocks, both geopolitical and economic, that the war in Iran brings to our populations,” von der Leyen said. Von der Leyen told the special parliamentary sitting of MPs and senators — she was the first woman to address a joint sitting in Australian history — that the deal would send a message that “when it comes to trade, Europe is open for business.”  “We are rearming. We are decarbonizing. We are preparing. We are becoming an independent Europe. And this means a more outward Europe. And this is why I am here today. Because showing up matters,” she said.  With U.S. President Donald Trump slamming tariffs on allies globally, Brussels and Canberra rekindled their negotiations last year. EU Trade Commissioner Maroš Šefčovič, who was in Canberra for the signing of the free-trade deal, stressed both countries’ commitment to a rules-based world order when he briefed journalists on Monday ahead of the final talks. “We are sending a strong signal that we prefer a low tariff — or in this case: no tariffs — and that we want to work on rules-based mechanisms,” Šefčovič said. Sensitive market access for Australian beef and sheep meat, plus sugar, rice and some dairy was the last point of discussion.  The two sides are believed to have agreed that Australia will be able to export between 30,000 and 35,000 tonnes of beef to Europe a year, up from the current 3,389 tons. Brussels had held firm to 30,000 metric tons during talks in recent weeks. In an earlier joint press conference, Albanese also suggested that Australia had extracted some concessions from the EU on the issue of geographic indicators, which could enable Australian producers to continue using names including feta, halloumi and Parmesan.  The issue was politically sensitive, with Australia’s European communities arguing they should be allowed to continue producing their food products under their original names.  “Whether it’s Greeks coming here and creating feta, or Italians coming and doing Parmesan [cheese], or people from Eastern Europe doing Kransky sausages … It’s a connection with Europe. It’s part of our strength,” Albanese said.   Australia will agree to protect the names of 165 European food products and 237 spirits. The two sides also agreed to modernize an existing wine agreement, which covers 50 new ones and includes — in a win for Brussels — prosecco as well.  Coming just two months after the EU signed a deal with the Latin-American Mercosur bloc — also a major beef producer — the Australian agreement is meant to deliver benefits for farmers, Šefčovič said.  “I believe that we are bringing very good news to our farmers,” he said, arguing that wine, sparkling wine, chocolate, sugar, confectionery, ice cream, some fruits and vegetables and many processed agricultural products will all “go down to zero from Day 1.” Cheeses, which are more sensitive for the Australians, will see tariffs phased out in three years. The trade chief also underlined EU agrifood exports to Australia already enjoy a surplus of €2.3 billion.  EU exports to Australia totalled €37 billion in goods and €28 billion in services in 2024, with the deal set to eliminate tariffs on almost all EU goods and many services. The agreement could boost that by one third in 10 years, the Commission estimates. A major win for the EU will be easier access to Australia’s natural resource wealth and incentives for European investments for Australian mining and refining. “Australia has almost all the critical minerals we need,” Šefčovič said. Speaking of the EU’s need for critical minerals, von der Leyen told lawmakers that a new partnership with Australia would be “crucial” to the EU, which ran the risk of becoming over-dependent on Chinese supplies. “That is precisely why we need each other,” she said.  Brussels also won a pledge from Australia to raise the threshold for its luxury car tax by almost 50 percent. Canberra currently charges a 33 percent levy on foreign-made cars above A$80,000 (or A$92,000 for a fuel-efficient one). Šefčovič said that will rise to A$120,000.  Koen Verhelst reported from Brussels; James Panichi reported from Melbourne.

HOUSTON — The Trump administration reached a nearly $1 billion agreement with French energy giant TotalEnergies on Monday to cancel its offshore wind leases off the coasts of New York and North Carolina. The announcement marks the latest blow by the Trump administration against the U.S. offshore wind industry, particularly in the Northeast, after it faced a series of recent legal losses. “The era of taxpayers subsidizing unreliable, unaffordable and unsecured energy is officially over,” Interior Secretary Doug Burgum told reporters at the CERAWeek by S&P Global conference in Houston. As part of the agreement, the Interior Department would terminate the leases for TotalEnergies’ Attentive Energy and Carolina Long Bay projects, worth $928 million, the department said. The lease sales occurred during the Biden administration. TotalEnergies committed to invest the value of those leases into oil and natural gas production in the United States, after which the United States will reimburse the company dollar-for-dollar for the amount they paid for the offshore wind leases, the department said. The company is poised to redirect the funds toward the Rio Grande LNG plant in Texas and the development of upstream conventional oil in the Gulf of Mexico and of shale gas production, according to the Interior Department. Burgum and TotalEnergies signed the agreements Monday from the conference. President Donald Trump has often attacked the U.S. offshore wind sector as unreliable and expensive. He’s repeatedly said he plans to have “no windmills built in the United States” under his tenure. Still, the settlement would suggest a new tack by the administration to target the sector. The Trump administration previously issued stop-work orders for offshore wind projects currently under construction on the East Coast, but judges lifted all five orders earlier this year. “Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees,” TotalEnergies Chair and CEO Patrick Pouyanné said in a statement. Pouyanné previously said the company would halt development of the Attentive Energy project, off the New Jersey and New York coasts, following Trump’s return to the White House. Both the Attentive Energy and Carolina Long Bay projects were in the early stages of development. Pouyanné told reporters that the company continues to invest in solar, onshore wind and batteries. The deal is a major blow for New York’s offshore wind targets, although proposed projects in the lease area controlled by TotalEnergies and its partners never secured final contracts with the state. New York Gov. Kathy Hochul (D) called the prospect of a deal “not helpful” last week. Attentive Energy dropped out of a bidding process for deals with New York in October 2024, even before Trump’s election. The state concluded that process last month with no awards amid the federal uncertainty and officials have struggled to determine next steps for the industry writ large. Hochul has pivoted to an “all of the above” energy strategy in the face of Trump’s opposition to offshore wind — including nuclear and fossil fuels. Further delays to the development of the technology off New York’s coast will likely further the state’s reliance on repowering fossil fuel plants to serve the New York City region. The deal also leaves New Jersey without any workable offshore wind projects at a time when Democratic Gov. Mikie Sherrill is already searching for more clean energy to combat a regional power crunch. The project was supposed to provide more than 1,300 megawatts of power. Sherrill’s predecessor, Phil Murphy, had lofty ambitions for the industry that were all for naught. His administration approved a series of offshore wind projects that all ran into financial or permitting challenges. The state approved Attentive Energy’s project in early 2024 as part of an attempted reset of the industry, which was already facing woe. The new affront could also prove problematic to permitting reform discussions on the Hill, as Democratic lawmakers have linked progress on those negotiations to whether or not the administration continues its attacks on renewable energy. ClearView Energy Partners said in a note last week the deal could also “re-raise concerns about the durability of federal approvals and therefore further erode, but not eliminate, the thin opportunity for bipartisan permitting reform on Capitol Hill.” So far, Senate Environment and Public Works ranking member Sheldon Whitehouse (D-R.I.) is staying the course on permitting talks, despite reports of the settlement agreement last week — a development he derided as “just more selling out the public for the fossil fuel industry.” His office did not immediately provide further comment Monday. Some Moderate New York Republicans last week also criticized the reported settlement. Marie French and Ry Rivard contributed to this report.

HOUSTON — Oil companies and the world’s largest energy consumers face a significant challenge to rebuild global petroleum supply chains and inventories once the critical Strait of Hormuz bottleneck opens, Chevron CEO Mike Wirth said Monday. “We’ve got a lot of oil and gas now that is not flowing into the market,” Wirth said at the CERAWeek by S&P Global conference in Houston. “Physical supply chains don’t respond immediately, so even if the strait opens at some point, it will take time to rebuild inventories of the right grades of crude and the right types of fuel.” Wirth cautioned that Iran’s attacks on oil tankers and the broader damage of the Middle East war did greater damage to oil and gas markets than the Russia-Ukraine war. Asian nations are running low on diesel and jet fuel. The war has held up deliveries of LNG, fertilizer and other products. Part of the challenge, Wirth said, will be taking a read of the damage. It’s unclear how much production has been shut in, Wirth said, and how badly some facilities were damaged. At the same event, Energy Secretary Chris Wright reiterated to oil executives that he anticipated the global disruption to oil and gas flows would be “short-term,” but he encouraged companies to ramp up production. “Markets do what markets do,” Wright said. “Prices went up to send signals to everyone that can produce more: ‘Please, produce more.’”

President Donald Trump said Monday the United States would pause “any and all military strikes against Iranian power plants and energy infrastructure” for five days as Tehran and Washington engage in diplomatic negotiations. In a social media post, Trump wrote that the U.S. and Iran have had “very good and productive conversations” in the past two days and that the pause on strikes against energy infrastructure came as a direct result of the “in depth, detailed, and constructive conversations.” Trump added that the talks “will continue throughout the week.” The move indicates that a diplomatic off-ramp to the conflict between the U.S. and Iran could be in reach. It also followed increasing unease from the U.S.’s allies in the Middle East and Europe over the conflict continuing to spiral. Ferdinand Knapp contributed to this report. This is a breaking news story that will be updated.

Iranian missiles late Saturday hit two southern Israeli towns close to a nuclear facility in what Tehran said was retaliation for Israeli strikes on Iran’s nuclear site at Natanz. More than 160 people were injured in the strikes, which hit the towns of Dimona and Arad near Israel’s Negev Nuclear Research Center, according to the Israeli health ministry. The attack came as U.S. President Donald Trump warned that the United States will “obliterate” energy plants in Iran if the government in Tehran doesn’t fully open the Strait of Hormuz, giving the country a 48-hour deadline to comply. Tehran warned in reply that any strike on its energy facilities would prompt retaliatory attacks on U.S. and Israeli energy and infrastructure facilities. Iranian state TV said Saturday’s strikes by Tehran were a response to an attack on Iran’s Natanz nuclear facility earlier in the day, according to the BBC. Mohammad Bagher Ghalibaf, speaker of Iran’s parliament, said the fact that ballistic missiles evaded Israeli defenses and struck near the nuclear research site appears to signal “a new phase” in the war. “If Israel is unable to intercept missiles in the heavily protected Dimona area, it is, operationally, a sign of entering a new phase of the conflict,” he posted on social media network X. “Israel’s skies are defenseless.” He added that the “time has come to implement the next pre-planned schemes,” without providing further details. Israeli military spokesman Effie Defrin said the strikes did not represent a new threat. “The air defense systems operated but did not intercept the missile. We will investigate the incident and learn from it,” he wrote on X. Israeli Prime Minister Benjamin Netanyahu said it had been a “very difficult evening,” and vowed to “continue to strike our enemies on all fronts.” The International Atomic Energy Agency said it was aware of the strikes near the nuclear research center and has not received any indication of damage to the facility, nor any information from regional states indicating that abnormal radiation levels have been detected.

U.S. President Donald Trump warned late Saturday that the United States will “obliterate” energy plants in Iran if the government doesn’t fully open the Strait of Hormuz, giving the country a 48-hour deadline to comply. “If Iran doesn’t fully open, without threat, the Strait of Hormuz, within 48 hours from this exact point in time, the United States of America will hit and obliterate their various power plants, starting with the biggest one first,” Trump said in a post on Trust Social. Iran warned in reply that any strike on its energy facilities would prompt attacks on U.S. and Israeli energy and infrastructure facilities — specifically information technology and desalination operations — in the region, the Associated Press reported, citing a statement by an Iranian military spokesperson carried by state media and semiofficial outlets. The warnings of escalation in the Mideast conflict come after the British government on Saturday confirmed that Tehran launched an unsuccessful attack on Diego Garcia, a joint U.S.-U.K. military base in the Indian Ocean. Media reports said Iran fired two ballistic missiles at the base but missed. Meanwhile, Israel claimed that Iran has missiles with a range of about 4,000 kilometers, capable of hitting London, Paris and Berlin. “The Iranian terrorist regime poses a global threat. Now, with missiles that can reach London, Paris or Berlin,” the Israel Defense Forces said in a post on X. Iran’s targeting of the base on Diego Garcia occurred before Britain on Friday confirmed that U.S. use of its bases includes defensive operations against “missile sites and capabilities being used to attack ships in the Strait of Hormuz,” a permission that includes the Indian Ocean island.

European countries are being advised to lower gas storage filling targets and to start refilling gas stores early, as the conflict in Middle East drives up global energy prices. European Energy Commissioner Dan Jørgensen urged in a letter to national energy ministers, seen by POLITICO, that countries should be flexible in how they refill gas stores, to “help reduce the gas demand at times where the supply is tense and ease the pressure on gas prices in Europe.” Since the U.S. and Israel launched strikes on Tehran in late February, the ensuing conflict has caused global energy prices to spike, driven in part by Israeli strikes on Iran’s vast offshore gas field and Tehran’s effective closure of the Strait of Hormuz, a critical passage that facilitates a significant share of the world’s oil and natural gas trade. In the letter, Jørgensen asked EU countries to lower their gas storage refilling targets to 80 percent, 10 percentage points below normal targets. He also suggested that countries could start storage injections early to avoid an “end-of-summer rush to refill storages,” which would put upward pressure on prices. He also suggested that governments extend the deadline to meet filling targets to as late as December, two months later than usual. He said countries can take these measures under the EU Gas Storage Regulation, which provides for flexibility in difficult market conditions. The EU requires member countries to maintain gas reserves at 90 percent of capacity by the winter — a measure brought in after Russia’s 2022 invasion of Ukraine. But this year’s colder-than-average winter depleted those reserves to an average of under 30 percent as of March, the lowest since 2022. Anxiety has been growing in Brussels over whether the conflict in Iran, coupled with already low gas reserves, could spark a fight among countries over dwindling global energy supplies. Jørgensen said that the EU’s gas supplies remain “relatively protected” since the bloc only has “limited reliance” on gas imports from the region. But as a “net importer” of gas globally, “high and volatile global prices may also impact the EU gas storage injections,” he said. As developments in Iran and the wider region are “are significantly impacting global oil and gas markets,” there are indications that it could take longer for Qatari gas production to return to pre-crisis levels, Jørgensen said. The commissioner said he would support countries to make use of the allowed flexibilities, which should be discussed with the European Commission and other member states before being implemented. A Commission spokesperson confirmed that the letter was sent to energy ministers.

Israel and Iran launched fresh attacks on each other on Saturday, the latest in a string of attacks since the U.S. and Israel launched strikes on Tehran in late February.  The U.S., meanwhile, was sending thousands more Marines to the Middle East, according to media reports, even as U.S. President Donald Trump broached “winding down” American military operations in the regioin.  Israel’s military said Saturday’s attacks targeted “the Iranian terrorist regime” in Tehran, as well as “Hezbollah targets” in Beruit. Israel also said that it identified missiles fired from Iran at Israeli territory.  Tehran also fired two ballistic missiles at Diego Garcia, a joint U.S.-U.K. military base in the middle of the Indian Ocean, but did not hit the base, according to a report by the Wall Street Journal. The British government condemned “Iran’s reckless strikes” and confirmed London’s agreement for Washington to use U.K. bases in attacks against Iranian “missile sites and capabilities being used to attack ships in the Strait of Hormuz.” The U.K. “is working closely with international partners to develop a viable plan to safeguard international shipping in the Strait of Hormuz,” it said in a statement.  Defense ministries in Saudi Arabia and United Arab Emirates said on Saturday that they were responding to incoming missile and drone threats, as the conflict continues to spill over into Persian Gulf states. Trump said in a Truth Social post late Friday that Washington is “getting very close to meeting our objectives as we consider winding down” the U.S. military campaign against Iran. He listed the objectives being met as “completely degrading” Iran’s missile capability, “destroying” the country’s defense industrial base, “eliminating” Iran’s navy and air force, keeping the country far away from nuclear capability, and protecting U.S. allies in the Middle East. Trump’s statement is at odds with the reports that the U.S. is sending more troops and warships to the region, and has requested another $200 billion from Congress to fund the war. The conflict has caused global oil prices to spike, driven in part by Israeli strikes on Iran’s vast offshore gas field and Iran’s closure of the Strait of Hormuz, a critical trade passage that facilitates a significant share of the world’s oil and natural gas trade. The U.S. said on Friday that it would temporarily waive sanctions on Iranian oil to help ease the short term shock to global markets, as Trump called NATO allies “cowards” for refusing to join the U.S.-Israeli war with Iran and help reopen the Hormuz channel.

U.S. sanctions on some Iranian oil will be temporarily lifted to allow the sale of shipments already in transit, Treasury Secretary Scott Bessent announced Friday. The partial pause on sanctions is intended to help ease what the Trump administration sees as a short-term shock to the global market as a result of the attack on Iran launched by the U.S. and Israel three weeks ago. Bessent said in a social media post that the U.S. is granting a short-term authorization to allow the sale of about 140 million barrels of Iranian oil in transit. “In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” he said. Oil prices have spiked to more than $100 per barrel since the U.S. launched airstrikes on Iran last month, triggering a rise in gas prices. Israeli strikes on Iran’s vast offshore gas field and Iran’s closure of the Strait of Hormuz, a critical trade passage that facilitates a significant share of the world’s oil and natural gas trade, have helped drive the increases. The sales have been authorized for 30 days, according to a copy of the general license issued by the Treasury Department on Friday. The announcement marks a partial reversal of the longstanding aggressive economic pressure campaign by the U.S. intended to weaken Iran’s economy, though Bessent said the country would have “difficulty accessing any revenue generated” from the sales. “The United States will continue to maintain maximum pressure on Iran and its ability to access the international financial system,” he added. Trump appeared to acknowledge he was aware that entering a war with Iran could cause oil prices to spike, even as he touted the success of the U.S. military operation and the strength of the economy. “I expected it worse actually,” he told reporters at the White House on Friday. “I thought that oil prices would go much higher.” Bessent said he’s confident the suspension of sanctions on Iran will benefit the U.S. economy in the long run. “Any short-term disruption now will ultimately translate into longer-term economic gains for Americans — because there is no prosperity without security,” he said. Democratic Senator Jeanne Shaheen of New Hampshire, the ranking member on the Senate Foreign Relations Committee, said in response that the easing of sanctions gives the Iranian government “a financial lifeline” as Americans “continue to feel the impact” of the war. “To say the president has no plan is an understatement,” Shaheen said.