FT News Briefing Iran crisis sends European gas prices soaring
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Mar 4, 2026 
Joe Lei, Beijing bureau chief who covers Chinese politics and policy. Ian Johnston, EU correspondent focused on energy markets and policy. They discuss how the Middle East conflict is driving European gas prices higher. They explain Europe’s current gas mix, refill challenges for winter and policy options Brussels might use to shield consumers. China’s five-year plan and social proposals also feature.
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Middle East Strikes Trigger Europe Gas Shock
- European gas prices spiked about 78% in two days after disruptions tied to Tehran's strikes and closure of the Strait of Hormuz.
- Ian Johnston notes Europe imports ~10% LNG from Qatar and global market tightness transmitted the shock to EU prices sharply.
Europe More Resilient Than 2022 But Reserves Are Low
- Europe is better positioned than in 2022 because it diversified toward LNG and renewables and increased US imports.
- Ian Johnston warns low winter reserves mean Europe must refill at high prices, limiting resilience.
Allow Temporary State Aid And Carbon Relief
- Brussels can temporarily loosen state aid and carbon allocation rules to shield industries and consumers from high energy costs.
- Ian Johnston suggests freeing allowances or enabling more state aid are immediate policy levers.