Europe Grapples With Gas Price Surge, Debates Capping and Subsidies

European Union nations are scrambling to respond as crude oil and gas prices surge amid the US-Iran conflict.

Prices at the TTF gas hub have risen nearly 80% since the conflict began, though still well below the 2022 peak.

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Von der Leyen floated subsidising or capping wholesale gas prices to shield households and businesses.

Greece announced plans to limit maximum profits for sellers of essential goods for three months.

The IEA proposed releasing 400 million barrels from strategic reserves — the largest release in history.

The EU's electricity system often prices power based on the last plant needed to meet demand — frequently gas.

Von der Leyen warned that reverting to Russian fossil fuels would be a strategic blunder.

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The EU introduced a gas price cap in 2022; it was never triggered and expired in 2025.

Many governments remained opposed to capping, concerned about market distortions.

The surge in energy prices comes as much of Europe still feels the scars from last year's Russian gas cut-off.

“European Commission President Ursula von der Leyen warned on March 11, 2026 in Brussels that reverting to Russian fossil fuels to curb rising energy prices amid the Middle East conflict would be a "strategic blunder," urging instead deeper reliance on renewables, power purchase agreements, state aid By Kate Abnett and Charlotte Van Campenhout BRUSSELS, March 11 (Reuters) - The European Union is considering measures to curb energy prices, including by capping gas prices, European Commission President Ursula von der Leyen said on Wednesday”

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Businesses warned that prolonged high prices could hollow out the industrial base.

Greek Prime Minister Mitsotakis said they will set a ceiling on profit margins for fuel and all goods.

The IEA release aimed to bring down crude prices after a three-year hiatus in reserve use.