Putin Signals Russia May Halt Energy Exports to Europe as Iran War Disrupts Global Oil and Gas Markets
Russia may stop supplying oil and gas to Europe ahead of planned EU restrictions, President Vladimir Putin said on Monday, and warned that the escalating war in the Middle East is already disrupting global energy logistics and driving oil prices sharply higher.
Speaking at a meeting with senior Russian energy officials and industry executives, Putin said the government had been instructed to evaluate the possibility of halting energy exports to the European market rather than waiting for new European Union restrictions to take effect.
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| File Photo of Russian Prez Vladimir Putin; Via: MFA Russia |
Putin suggested Russia could redirect those volumes toward markets where demand is growing and where buyers are willing to maintain long-term energy partnerships.
“If we reorient right now to markets that need increased supplies, we can establish ourselves there,” he said, adding that Moscow should focus on “countries that build constructive business relations with Russia.”
At the same time, he signaled Moscow remains open to continuing trade with Europe if political tensions ease.
“If European companies want stable long-term cooperation free from political considerations, we are ready to work with them,” Putin said.
The remarks came as the Kremlin held emergency discussions on the impact of the widening Middle East war on global fuel markets.
Putin said Russia had repeatedly warned that attempts to destabilise the Middle East would inevitably disrupt global energy systems.
“Attempts to destabilise the situation in the Middle East inevitably strike the global fuel and energy complex,” he said, adding that the current war is already creating logistical breakdowns in hydrocarbon transport routes and damaging global industrial supply chains.
The Russian president pointed to the effective disruption of the Strait of Hormuz, through which roughly 14 million barrels of oil per day — about one-third of global seaborne crude exports — moved last year.
The disruption in the Strait of Hormuz is already sending shockwaves through the global energy system. The narrow waterway handles roughly one-fifth of the world’s oil supply and a significant share of liquefied natural gas shipments, making it one of the most sensitive chokepoints in international trade. Already, oil prices have surged above $100 per barrel for the first time since 2022, reflecting fears that energy supplies could tighten further if the conflict drags on.
“Now this route is effectively closed,” Putin said, warning that oil production tied to the corridor risks being halted as storage facilities in the region fill with crude that cannot easily be exported.
“Production has already begun to decline, and storage in the region is filling with oil that cannot be transported or is extremely expensive to move,” he said.
He added that rerouting Middle Eastern energy flows away from Hormuz is not feasible in the short term.
“Completely switching logistics for Middle Eastern oil without the Strait of Hormuz is unrealistic right now,” Putin said, noting that new infrastructure and shipping routes would require significant investment and time.
The disruptions have already driven sharp volatility in global oil markets.
“In just the past week, prices have increased by more than 30 percent,” Putin said, noting that crude briefly surged above $119 per barrel before stabilising near $103.
Beyond energy markets, the conflict is beginning to ripple through global trade and manufacturing systems. Disruptions to oil and fuel shipments are forcing tankers to reroute or remain idle while ports and storage facilities across the Gulf struggle with logistical bottlenecks.
It is likely that interruptions to supply chains can quickly cascade into wider economic pressures, driving up transport costs, manufacturing input prices and consumer inflation. Governments in Asia and Europe have already begun exploring emergency measures to stabilise fuel markets and protect domestic industries from prolonged supply shocks.
He warned that similar pressures are emerging in natural gas markets, where supplies of liquefied natural gas from the Middle East have sharply declined as regional production facilities struggle to operate during the conflict.
“Production capacity in the region has fallen, and restoring it could take weeks or even months,” Putin said.
As a result, competition among major economies for stable energy supplies is intensifying.
“In the current conditions, competition among buyers for suppliers of energy resources is becoming more acute,” Putin said.
He added that Russia intends to use the current surge in energy revenues strategically, urging Russian energy companies to reduce debt and strengthen financial resilience while global prices remain elevated.
“I ask the government and the central bank to take this process under control,” Putin said.
The broader economic consequences of the war are now becoming visible across financial markets and trade networks. Global equities have shown volatility as investors price in the risk of sustained energy disruption, while industries ranging from aviation to textiles are grappling with higher fuel and shipping costs.
UPDATE:
Russian President Vladimir Putin and U.S. President Donald Trump discussed the escalating Iran conflict and the Ukraine war during an hour-long phone call initiated by Trump, Kremlin aide Yury Ushakov said. Ushakov described the conversation as “businesslike and frank,” adding that Putin outlined ideas for a political and diplomatic settlement around Iran while also offering a positive assessment of ongoing U.S. mediation efforts related to the Ukraine negotiations. The two leaders focused on the widening regional implications of the Iran war and the prospects for diplomatic engagement on Ukraine, according to the Kremlin.
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