Russia could halt natural gas supplies to Europe amid soaring energy prices triggered by the Middle East conflict, President Vladimir Putin warned on Wednesday. He linked the potential move to the European Union’s plans to ban Russian pipeline gas by 2027 and restrict new LNG contracts from April 2026.

“Now other markets are opening up. And perhaps it would be more profitable for us to stop supplying the European market right now,” Putin said, emphasizing that the statement was “thinking out loud” rather than a final decision. He instructed the Russian government and energy companies to explore the issue.

The warning comes as oil and gas prices spike following U.S. and Israeli strikes on Iran and Tehran’s retaliatory attacks on Gulf Arab nations. Shipping through the Strait of Hormuz has been disrupted, and key facilities, including Qatar’s LNG production and Saudi Arabia’s largest oil refinery, have been affected.

Putin noted that European gas prices have surged not only because of regional instability but also because buyers are willing to pay premium rates for volumes amid the Middle East crisis. He said Russia’s decision would be driven by market opportunities rather than politics.

Europe, once reliant on Russia for about 40% of its pipeline gas, has drastically reduced imports following Moscow’s 2022 invasion of Ukraine, sourcing energy instead from Norway, the United States, and Algeria. Last year, Russian supplies accounted for just 6% of the EU’s pipeline gas.

With Europe turning away from Russian gas, Moscow has increasingly targeted China for oil, pipeline gas, and LNG sales. Putin reaffirmed Russia’s commitment to reliable partners, citing countries such as Slovakia and Hungary in Eastern Europe.

“Customers have emerged who are willing to buy the same natural gas at higher prices, in this case due to events in the Middle East and the closure of the Strait of Hormuz,” Putin said. “This is natural; there’s no political agenda—it is just business.”