French Fishermen Block Key Mediterranean Ports Over Rising Fuel Costs Linked To US-Iran War

French fishermen blocked the entrances to the ports of Nice and Sete and an oil depot in Frontignan on Thursday, Sept. 17. They were protesting against rising fuel prices linked to the US-Iran war.

The protests took place along France’s Mediterranean coast as diesel prices neared a record high. Fishermen are also unhappy about fishing rules and other costs facing the industry.

The fishermen agreed to end the blockades after six hours of talks, French Junior Minister for Fisheries Catherine Chabaud said on Thursday.

She said fishermen facing cash-flow problems would be given zero-interest loans. Fuel support would also be linked to changes in fuel prices, she said.

Diesel, the most widely used fuel in France, cost more than 2.37 euros per litre ($2.72) on Thursday. That was just below the record of 2.38 euros, according to an AFP analysis of government data.

The protests had been going on for three days.

Prime Minister Sebastien Lecornu said on Wednesday that the government would raise petrol subsidies for the fishing industry to the highest level allowed under European Union rules.

The move did not stop the protests.

Lecornu later extended emergency fuel subsidies for the agriculture, fishing and construction sectors until the end of the year.

The French government has blamed the US-Iran conflict for much of the recent pressure on fuel prices.

Crude prices have risen by about 20% this month as the ongoing conflict between the United States and Iran continues. Saudi Arabia has also been forced to shut a key pipeline while it battles Houthi fighters in Yemen.

The fishermen have also raised issues over European regulations, bluefin tuna catch limits and new rules for eel fishing.

Higher energy prices are also making the government’s work on the 2027 budget harder.

France is due to present the budget at the end of the month. The country’s parliament is deeply divided, while a bond market selloff has pushed French borrowing rates to their highest level since 2008.

Finance Minister Roland Lescure said last Friday that the effects of the Middle East crisis meant the government would miss its fiscal deficit target this year.

He also said the government was struggling to find spending cuts that opposition parties would accept.

President Emmanuel Macron has called party leaders to a meeting on Friday to discuss the situations in the Middle East and Ukraine and their impact on energy markets.

References: dawn, theweek