Nuclear energy has once again returned to the center of a heated debate among European leaders, at a time when a new energy crisis is sweeping the world, leaving the import-dependent European Union racing to find alternative energy sources. The bloc still imports more than half of its energy needs, making it highly vulnerable to global market shocks, such as the unprecedented disruption to oil and gas supplies currently taking place in the Strait of Hormuz amid the ongoing war between the United States and Israel on one side and Iran on the other. To keep the lights on and prevent large segments of Europe’s population from slipping into energy poverty, Europe may have little choice but to turn back to nuclear power.

The European Commission — the executive arm of the European Union — has introduced a number of new nuclear-related initiatives as part of its strategy to address the escalating crisis, marking a shift from Europe’s previous trajectory of moving away from nuclear energy. European Commission President Ursula von der Leyen confirmed this shift, saying at the nuclear energy summit held in Paris on March 10:

“I believe it was a strategic mistake for Europe to turn its back on a reliable, affordable, and low-emission source of energy.”

Nuclear energy has long been a controversial issue among European leaders. Most member states moved away from it, with Germany leading opposition to nuclear power. In contrast, France has remained one of the strongest advocates of this carbon-free energy source, generating around 65% of its electricity from nuclear power. However, even the most committed opponents have begun softening their stance in recent years, as momentum builds around nuclear energy as a dual-benefit solution that enhances energy security — particularly Europe’s energy independence — while also helping achieve climate goals.

This shift had already begun even before Europe “sleepwalked into another energy crisis.” Last year, the governments of Italy and Denmark made progress toward lifting decades-long bans on nuclear energy production, while Spain showed renewed openness to reconsidering plans to shut down its nuclear plants. Notably, Germany even agreed to drop its opposition to nuclear energy within EU legislation, in an unprecedented alignment with France on an issue that has historically been a major point of contention. A German official described the move as a “radical policy shift” that would help remove obstacles and improve efficiency in shaping EU energy policy.

We are now seeing some of the results of this shift, with the European Commission clearly embracing nuclear energy as part of its strategy to tackle the energy crisis. The emergence of small modular reactors is a major factor behind the region’s changing stance and a central pillar of its nuclear strategy. This emerging technology promises to make nuclear power safer, more cost-effective, and easier to deploy at scale.

This month, a €330 million nuclear investment package was announced under the Euratom research and training program for 2026–2027, with strong support for small modular reactor technology.

The European Commission has announced plans to bring these reactors into operation as early as the early 2030s, with a goal of expanding capacity to between 17 gigawatts and 53 gigawatts by 2050. A recent Euronews report stated that the Commission has pledged to reduce bureaucracy by streamlining licensing procedures, along with providing financial guarantees to accelerate deployment, noting that 11 EU member states have already backed a joint declaration supporting the technology.

At the same time, Europe is increasing investment in nuclear fusion research and development. A significant €222 million from the Commission’s nuclear research funding has been allocated to fusion energy, highlighting the bloc’s ambition to launch its first commercial fusion power plant. According to a report by EE News Europe, this funding underscores the EU’s goal of achieving major progress in this field.

Notably, Germany is among the leading countries in the race to develop nuclear fusion — which, unlike nuclear fission, does not produce radioactive waste — and could be on track to become the first country in the world to successfully operate a viable commercial fusion reactor.

A record rise in sulfur prices, driven by the war with Iran, has increased costs for nickel producers in Indonesia and copper mining companies in Africa.

Sulfuric acid is a key component in mining and metal refining processes. The Middle East accounts for 24% of global sulfur production, where it is typically produced as a byproduct of oil and gas refining.

Sulfur prices in Indonesia have risen about 20% since the outbreak of the war to around $600 per ton, according to data from Argus. However, some sales to nickel refineries using high-pressure acid leaching technology have exceeded $700 per ton, according to a trader supplying the sector.

In southern Africa, prices have increased 37% to reach $715 per ton since the start of the war with Iran, while prices for smaller bagged quantities of sulfur stored in African port warehouses have surged 66% to $1,000 per ton, according to Maria Mosquera, head of sulfur pricing at Argus.

According to Argus data since 2021, sulfur prices have reached their highest levels in at least five years.

Raghav Jain, head of nickel and copper pricing at Argus, said that continued high prices could delay project expansions and slow supply growth in Africa’s copper belt.

Higher sulfur and sulfuric acid prices are also likely to deliver additional gains for copper smelters in China, partially offsetting weak treatment and refining charges that have fallen to historically low levels.

Bitcoin declined on Thursday, tracking broader losses across cryptocurrencies and risk assets after US President Donald Trump signaled an escalation in military operations against Iran in the coming weeks.

The world’s largest cryptocurrency retreated after a relatively positive start to April but remained within the trading range that has dominated its performance for most of the year. Bitcoin fell 2.9% to $66,465.7 as of 01:29 AM Eastern Time (05:29 GMT).

Trump said on Wednesday evening that the United States will intensify its military operations against Iran over the next two to three weeks, noting that Washington is close to achieving its military objectives.

He added: “We will hit them very hard over the next two to three weeks,” reiterating the need to limit Iran’s nuclear capabilities.

Trump also called on Iran to accept an agreement or face US strikes targeting energy infrastructure, a threat he has repeated several times since the conflict began.

The US president’s remarks weakened hopes for de-escalation in the Iran war, especially after earlier signals this week had suggested a possible reduction in military operations.

Iran, for its part, denied earlier this week that it had engaged with the United States regarding a ceasefire, confirming that no direct talks have taken place since the conflict began more than a month ago.

Risk assets declined broadly following Trump’s remarks, with Asian equities and Wall Street futures posting notable losses.

Bitcoin ETFs record first inflows since October

Data from SoSoValue showed that Bitcoin exchange-traded funds recorded their first positive monthly inflows in March since October.

Spot Bitcoin ETFs saw net inflows of $1.2 billion during March, following four consecutive months of outflows. This came as Bitcoin had declined by as much as 50% from its record high reached in October.

During March, Bitcoin outperformed most other speculative assets, posting modest gains while sectors such as equities and precious metals recorded significant losses. However, the world’s largest cryptocurrency remains down about 24% since the start of 2026 and has traded near the $60,000 level for most of the year.

Altcoins decline as Iran concerns persist

Other cryptocurrencies also declined broadly as risk appetite weakened amid ongoing tensions related to the Iran war.

Ethereum, the world’s second-largest cryptocurrency, fell 4.7% to $2,049.22, while XRP declined 3.6% to $1.3139.

Oil prices surged about 7% on Thursday after US President Donald Trump said the United States will continue attacks on Iran, raising fears of prolonged disruptions to global oil supplies.

Brent crude futures rose $8.34, or 8.2%, to $109.50 per barrel as of 11:39 GMT. US West Texas Intermediate crude futures also climbed $9.23, or 9.2%, to $109.35 per barrel, hitting their highest level since March 9.

Both benchmarks are on track for their largest daily gains in three weeks in both absolute and percentage terms, although they remain below levels above $119 per barrel reached earlier in the conflict.

Trump said: “We will hit them very hard over the next two to three weeks. We will send them back to the Stone Age where they belong.” He did not provide details on steps that could lead to reopening the Strait of Hormuz.

Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, said markets are reacting to the absence of any “clear signal of a ceasefire or diplomatic engagement” in Trump’s speech. She added that “if tensions escalate or maritime risks increase, oil prices could test new record levels as markets price in potential supply disruptions.”

UK hosts talks on reopening the Strait of Hormuz

Meanwhile, the United Kingdom is hosting a virtual meeting involving 35 countries to discuss options for reopening the Strait of Hormuz, although the United States is not expected to participate.

In another development, Qatar’s Ministry of Defense said that an oil tanker chartered by state-owned QatarEnergy was struck by an Iranian cruise missile in Qatari waters on Wednesday.

Some market participants said they have stopped dealing in cargoes priced against the Dubai benchmark for Middle Eastern crude, which is typically used to price about one-fifth of global oil supplies, due to the inability to use ports located within the Strait of Hormuz.

At the same time, the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and its allies, is likely to discuss increasing oil production again on Sunday, according to sources. Such a move could allow member states to pump more oil if the Strait of Hormuz is reopened, but it would not materially boost supply before that.

In Russia, Ukrainian strikes on port infrastructure, pipelines, and refineries have reduced export capacity by about one million barrels per day, or roughly one-fifth of total capacity, according to sources, potentially paving the way for imminent production cuts.

The head of the International Energy Agency also warned that supply disruptions will begin to impact Europe’s economy in April, after the region had previously been shielded by shipments contracted before the outbreak of the war.