The European Commission wants to let countries unleash more public money to help businesses with fuel and fertiliser bills, as governments race to offset the economic shock from soaring prices triggered by the Iran war, Reuters reports.

Oil prices jumped about 6 per cent to more than $100 a barrel after the US military said it would block ships leaving Iran’s ports, raising fears of prolonged disruptions to oil and gas shipments.

As part of a broader package of measures Brussels is preparing to respond to the energy price spike, the Commission has proposed changing EU state aid rules to allow more public spending for industries hit acutely by fuel price increases, including agriculture, road transport and shipping within Europe.

The changes will let governments cover part of the price increase companies have paid for their fuel or fertilisers, versus prices before the US-Israeli war with Iran began on February 28.

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