As oil prices surged past $100 and tanker traffic through the Strait of Hormuz faltered, the United States moved quickly to calm the market. Europe, however, is refusing to follow Washington’s lead.
U.S. president Donald Trump announced on Monday the temporary suspension of some oil sanctions on Russia, with the aim of stabilising crude prices and ensuring energy supply during a period of global tension following the war against Iran.
The decision came after a one-hour phone call between Trump and Russian president Vladimir Putin and had an immediate impact on markets.
Oil prices quickly began to fall back toward levels seen before the war against Iran, easing inflationary pressure across Western economies.
Several European leaders, however, made clear they have no intention of taking the same path.
German chancellor Friedrich Merz quickly ruled out relaxing sanctions.
“There is no reason to think about relaxing sanctions on Russia,” Merz said at a press conference in Berlin on Tuesday alongside Czech prime minister Andrej Babiš, arguing that Europe must maintain “solidarity with Ukraine.”
The stance highlights the central tension in Europe’s current energy policy: a strategy that prioritises political signalling even when the economic cost falls on its own citizens.
In recent weeks, the war in the Middle East and disruptions in the Strait of Hormuz—through which roughly one-fifth of the world’s oil normally passes—had pushed crude prices above $100 per barrel, raising fears of a global energy shock.
Washington’s response was simple: increase supply. Temporarily easing restrictions on Russian oil allows millions of barrels per day—currently constrained by sanctions imposed after the invasion of Ukraine—to return to global markets.
Trump’s decision could also open an opportunity to ease Europe’s energy burden. The continent has endured a dramatic surge in gas and electricity costs since the war in Ukraine, forcing governments to spend hundreds of billions of euros to shield households and industry from soaring bills.
Some European leaders have already hinted at the dilemma. On 7 March, Polish prime minister Donald Tusk warned that turmoil in the Middle East could reshape global energy markets.
“The war in the Middle East continues and chaos is spreading. Oil prices are going up. Washington may lift sanctions on Russian oil. Who is the real winner here?” Tusk wrote on social media.
Sanctions on Russian energy were originally designed to pressure the Kremlin after the invasion of Ukraine. In practice, however, much of Russia’s oil has simply been redirected to buyers such as India and China, limiting the policy’s effect on global supply.
Washington now appears willing to adjust its strategy to stabilise markets. Europe, for the moment, seems prepared to bear the economic cost of staying the course.
