Middle East Tension Ripples Through Oil & Gas Markets: Russia Signals It May Halt Gas Supplies to Europe ‘Before the Door Closes’

Kathmandu — Russian President Vladimir Putin has stated that the ongoing instability in the Middle East is creating immense pressure on the global oil and gas markets, warning that oil supplies through the Strait of Hormuz could come to a complete halt in the coming days. Addressing a meeting on the situation in the global oil and gas markets on Monday, he also reminded that Russia had previously warned of such consequences stemming from instability in the Middle East.

Putin said, “Oil production linked to the use of the Strait of Hormuz risks coming to a complete halt as early as within the next month. It has already begun to decline, while storage facilities in the region are filling up with oil that cannot be exported.” He noted that a full rerouting of Middle Eastern oil supplies without using the Strait of Hormuz is unrealistic.

Noting that a similar situation is unfolding on the global gas market, Putin stated that supplies of liquefied natural gas from the Middle East have sharply declined and production capacity has fallen. He said, “It is impossible to quickly compensate for the missing volumes. As a result, global gas prices are also rising – in my view, even faster than oil prices.”

Putin claimed that in such a competitive environment, the reliability and stability of Russian energy companies stand apart from others. He stated, “We will certainly continue supplying oil and gas to those countries that themselves remain reliable counterparties. I mean not only our partners in the Asia-Pacific region but also states in Eastern Europe, such as Slovakia and Hungary.”

Referring to the European Union’s plan to impose additional restrictions on imports of Russian hydrocarbons from April 25, with a full ban by 2027, Putin gave a stern response. He said, “In this regard, the Russian Government has already been tasked with assessing the possibility and feasibility of terminating supplies of our energy resources to the European market – rather than waiting for the door to be demonstratively slammed in our face. Instead, we should consider doing this now and redirect these volumes from the European market to more promising destinations.”

However, Putin also made it clear that Russia remains open to working with European companies and buyers if they ensure long-term and stable cooperation, free from political fluctuations. He stated, “We have never refused such cooperation. But we need signals from them that they are also ready and willing to work together and will ensure stability and predictability in our relations.”