Natural gas prices in Europe climbed sharply, rising 8% in early trading today following warnings from Russian President Vladimir Putin that Moscow could halt deliveries to the continent. The announcement came amid soaring energy costs linked to the Middle East conflict and threats of European sanctions on Russian gas and liquefied natural gas (LNG) imports.

By 10:15 Bulgarian time, April futures on the Dutch TTF hub reached 54.00 euros per megawatt-hour, approaching the nearly three-year highs of around 65.50 euros/MWh recorded on March 3. The spike follows disruptions to regional energy flows after U.S. and Israeli strikes on Iran, which triggered retaliatory attacks and paralyzed shipping through the Strait of Hormuz. LNG production in Qatar and Saudi Arabia’s largest oil refinery has also been affected.

Putin linked the rising oil and gas prices to “aggression against Iran” and Western sanctions on Russian oil, noting that European buyers are willing to pay more for natural gas in the current volatile situation. When asked about the EU’s plans to ban Russian gas imports via pipelines from 2027 and LNG contracts from April 2026, Putin suggested it might be more profitable for Russia to redirect supplies to other emerging markets rather than continue selling to Europe.

“Now other markets are opening up. It may be more profitable to stop supplying Europe and focus on these new markets. This is not a decision yet, but something we are considering,” Putin said, emphasizing that the move would be driven by market opportunities rather than politics.

Russian gas exports to Europe have already fallen sharply over recent years. Russia once supplied around 40% of EU pipeline gas, but last year this share dropped to just 6%, according to EU data. Gazprom, Russia’s state-owned gas giant, has also seen its market value decline from over USD 330 billion in 2007 to about USD 40 billion today.

Despite this, Putin insisted that Russia remains a reliable energy partner and highlighted that buyers willing to pay higher prices have emerged due to the current crisis, particularly in the Middle East. He suggested that some Western suppliers, including U.S. companies, might withdraw from the European market in favor of these higher-paying customers.

Moscow has increasingly turned toward China for energy exports, including oil, pipeline gas, and LNG. “Russia continues to work with reliable partners, including European ones, such as Slovakia and Hungary, while also expanding into other markets,” Putin added.