Putin’s Russia gains leverage as fuel price spikes hit Europe

Fuel prices are surging across the European Union amid an ongoing war in the Middle East that is disrupting energy supplies to the Old Continent and global markets.

The crisis has led to calls to ease sanctions on Russia, just as the EU prepares to slap additional restrictions on Russian imports. Putin says Moscow is waiting for the right signal from Brussels.

Iran war fuels price hikes at European gas stations

Prices of gasoline and diesel have risen sharply in the European Union since the United States and Israel launched their military operations against Iran.

The Islamic Republic responded with rocket and drone attacks on its neighbors in the Persian Gulf and closed the Hormuz Strait, briefly bringing oil above $100 per barrel.

Meanwhile, at the start of the week, natural gas surpassed $800 per 1,000 cubic meters on European exchanges for the first time in three years.

Against this backdrop, Europeans have been paying more and more at the pump. According to data compiled by the Fuelo.eu platform, a liter of regular 95 is selling in Germany for an average of €2.074 ($1.17) on Tuesday, up €0.263 in the past 30 days.

Deutsche Welle reported on the weekend that premium gasoline went as high as €2.50 ($2.90) while diesel was selling at over €2, or €0.30 higher than before the war started.

The latest increases come on top of already expensive fuel due to Russia’s invasion of Ukraine. Coupled with faltering supply chains and additional global uncertainty, they are “proving toxic for the German economy,” the national broadcaster commented.

So far, the federal government hasn’t done much to address the dramatic rise in fuel costs, aside from setting up a task force to monitor the situation and eventually propose measures.

What’s more, the authorities in Berlin have been accused of “cashing in on motorists” as almost half of what drivers pay to fill up the tank goes to the state in the form of various taxes.

Hungary caps fuel prices, calls for easing Russia sanctions

Alongside Europe’s economic powerhouse, other nations in the Union are also facing the consequences of the conflicts in adjacent regions, feeling the effects even more strongly.

Among them is Hungary, which was already hit by the suspension of oil supplies through the Druzhba pipeline, which was damaged in a Russian attack in January.

To deal with rising fuel rates, the government of Prime Minister Viktor Orbán introduced price caps for both petrol and diesel while also releasing state reserves, as reported by Euronews.

Hungarian Prime Minister Viktor Orbán called on the European Union to suspend sanctions on Russian energy imports, citing rising energy costs across Europe.

Orbán, who is fighting for votes in the parliamentary election next month, also urged European leaders to lift sanctions on Russian energy. On Monday, he took to social media to state:

“The Ukrainian oil blockade and the war in the Middle East are sending oil prices soaring. Europe must act. Today, I wrote to President Costa and Von der Leyen calling for the review and suspension of sanctions on Russian energy.”

Russia expecting Europe’s signal, Putin says

The EU sanctioned Russian oil imports in 2022, after Moscow invaded Ukraine, although Hungary and Slovakia were granted exemptions and continued to receive significant amounts through Druzhba.

In late 2025, EU member states agreed to phase out Russian oil and stop gas imports, but the war in the Middle East may partially restore Russia’s role as an energy supplier. The U.S. recently eased some sanctions and allowed India to import Russian crude.

On Monday, President Vladimir Putin said his country is ready to deliver oil and gas to Europe, but also made it clear that Moscow is waiting for the respective request.

“If European companies and consumers suddenly make a decision to change their position to ensure our long-term, reliable joint work, free from timeserving political considerations … they are welcome,” he stated, quoted by TASS.

“But we need some sort of signal from them,” the Russian leader said, while remarking that Russia is at the same time considering halting fuel supplies “without waiting for the door to be demonstratively slammed“ in front of it.

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