Gas prices in the region will surge 100% more than previously projected, Kirill Dmitriev has said

Gas prices across the EU are set to rise by at least 100% more than previously forecast, Kremlin envoy Kirill Dmitriev has said, as bloc officials continue to push member states to shun Russian energy.

Dmitriev's remarks come as the escalating Middle East crisis triggered by the unprovoked US-Israeli attack on Iran has sent global oil and gas prices soaring.

At the same time, the EU has continued to struggle with the consequences of its move to sever energy ties with Russia over the Ukraine conflict, as well as its controversial green energy policies.

"We forecast at least 100% higher [gas prices in the EU] than previously projected, as Europe takes time to inevitably beg for more Russian gas," Kremlin investment envoy Kirill Dmitriev said on Tuesday on X, commenting on projections by Bloomberg.

On Monday, the news agency cited a report from HSBC as saying that natural gas prices in the region are expected to be 40% higher than previously projected for 2026 and remain elevated through the next year.

Energy markets have faced renewed volatility following the launch of the US-Israeli war on Iran and the ensuing disruption to global shipping through the Strait of Hormuz - a key artery for global supplies of oil and liquified natural gas (LNG). Traffic through the strait has reportedly dropped by 80%. Crude oil and European wholesale gas prices have moved sharply higher, piling further pressure on energy-intensive industries and sparking concerns about the EU's energy security.

Bloomberg noted that the region is especially vulnerable to LNG supply disruptions, with storage levels roughly 15% below the five-year average following a cold winter.

The surge in gas prices projected by HSBC sharply contrasts with US natural gas futures, which have remained largely stable, Bloomberg reported. Ample stockpiles and LNG export terminals operating near full capacity have reportedly insulated the world's largest gas exporter from global supply shocks.

The latest developments in the energy sector have prompted some EU politicians to step up calls to reconsider sanctions on Russia, after Russian President Vladimir Putin warned that Moscow could halt gas supplies to the bloc ahead of Brussels' planned 2027 ban.

(RT.com)