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EU Considers Gas Price Cap Amid Middle East Conflict

Published March 11, 2026, 12:16
EU Considers Gas Price Cap Amid Middle East Conflict

The European Union is considering imposing a price cap on natural gas in response to rising prices due to the conflict in the Middle East and in an effort to reduce the influence of natural gas on electricity prices. European Commission President Ursula von der Leyen stressed the need for better utilization of existing tools such as supply contracts, state aid, and price subsidies. However, there are concerns that imposing a price cap or subsidies could lead to counterproductive consequences, increasing demand and burdening public finances. Nevertheless, current prices remain lower than the levels of the 2022-2023 energy crisis. Von der Leyen also supported the need to modernize the Emissions Trading System (ETS), which has contributed to reducing natural gas consumption in the EU. The EU is seeking ways to limit pressure on energy prices and protect consumers from extreme fluctuations. EU leaders are expected to discuss more specific measures next week, taking into account potential impacts and different views on the effectiveness of price caps.