Russia weighs redirecting gas away from Europe while Iran conflict pushes energy prices higher

Russian President Vladimir Putin has indicated that Moscow could suspend natural gas deliveries to Europe if current market conditions persist, as global energy prices climb amid intensifying tensions involving Iran.

Speaking on March 4, Putin said Russia is examining the option while the European Union moves toward eliminating imports of Russian pipeline gas by 2027. The bloc is also preparing to restrict new short-term contracts for Russian liquefied natural gas beginning in April 2026.

Energy markets rattled by Middle East conflict

The comments came as oil and gas prices surged following military exchanges involving the United States and Israel against Iran, followed by Iranian retaliatory strikes targeting Gulf Arab states. The escalation has disrupted maritime traffic through the Strait of Hormuz, a crucial corridor for global energy shipments.

The instability has also forced shutdowns at major regional energy facilities. Liquefied natural gas production has been halted in Qatar, while Saudi Arabia temporarily closed its largest oil refinery, further tightening supplies in international markets.

Putin attributed the rising oil prices to what he described as “aggression” toward Iran along with Western sanctions targeting Russian oil exports. He also noted that European gas prices were increasing because buyers were willing to pay more to secure supplies during the uncertainty created by the Middle East crisis and the disruption in Hormuz.

Russia weighing alternative markets

According to a Kremlin transcript of his remarks, Putin suggested Russia might ultimately earn more by redirecting its gas to other regions where demand and prices are higher. He emphasized that the idea remains under review rather than a finalized policy, adding that the government will consult with Russian energy companies to evaluate the potential shift.

Putin also warned that if higher-paying customers appear elsewhere, traditional suppliers—including firms from the United States—might redirect shipments away from Europe as well.

Europe reducing dependence on Russian energy

Since the start of its energy decoupling strategy, the European Union has steadily reduced purchases of Russian fuel. In response, Moscow has expanded energy trade with Asian partners, particularly China, increasing exports of crude oil, pipeline gas and LNG.

Despite the tensions, Putin insisted Russia remains a dependable energy partner. He said Moscow intends to continue working closely with countries it considers reliable customers, including European states such as Slovakia and Hungary.

With information from Egypt Oil & Gas Group.