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Gas prices in the EU are projected to increase by at least 100%, according to Kremlin envoy Kirill Dmitriev, as geopolitical tensions rise from the US-Israeli conflict with Iran and the EU's sanctions on Russian energy. HSBC predicts a 40% increase in natural gas prices for 2026.

Energy markets are facing volatility, with supply disruptions from the Strait of Hormuz impacting global shipping. The EU's LNG storage levels are about 15% below the five-year average. Despite rising prices and internal dissent, EU leaders, led by President Kaja Kallas, reject any normalization of energy ties with Russia, prioritizing long-term security over immediate economic relief.