European gas prices surge to nearly three-year high as Kremlin again suggests alternatives to Russian gas

⑴ A Kremlin spokesperson stated that Europe is suffering economic pains due to the surge in natural gas prices triggered by the Iran war, pointing out that Europe's reliance on expensive spot market gas sources has driven up its own energy costs, while purchasing Russian pipeline gas could significantly reduce expenditures. ⑵ Recently, European natural gas prices have climbed to their highest levels since the end of 2022. Escalating geopolitical conflicts, combined with shifts in export routes from major suppliers such as Qatar, have further tightened the already fragile supply-demand balance in the European gas market, with Dutch TTF futures prices remaining high for several consecutive weeks. ⑶ Peskov’s remarks come during a critical winter stockpiling window. Although Europe's natural gas inventories are generally ample, persistently high gas prices are eroding the competitiveness of the industrial sector and driving up residential energy costs. Going forward, the market’s main focus is whether the EU can find a sustainable balance between maintaining its sanctions stance against Russia and ensuring energy needs for people's livelihoods.