European natural gas futures climbed above €52/MWh on Thursday, approaching a three-year high after Russian President Vladimir Putin threatened to cut off gas supplies to Europe. Russian gas deliveries to the continent have already dropped sharply in recent years, and additional declines are expected from April 2026 through the end of 2027 as the EU’s ban on Russian gas imports takes effect. This raises risks for Europe’s supply balance, particularly amid major disruptions linked to tensions in the Middle East, with the world’s largest LNG plant in Qatar still offline and the Strait of Hormuz closed.
Futures had fallen more than 8% on Wednesday after reports that Iran had reached out to the US to negotiate an end to the conflict, though Tehran later denied this. At the same time, President Trump stated that the US would insure and escort vessels transiting the Strait of Hormuz, but the specifics of the plan remain unclear. These developments come as EU gas storage levels are tight, currently standing at below 30% of capacity.
