The European Union is exploring options to subsidize or cap natural gas prices to curb rising energy costs linked to the Iran conflict, Reuters reported on March 11, citing a European Commission spokesperson. Speaking to the European Parliament the same day, Commission President Ursula von der Leyen said Brussels is considering measures to reduce gas-driven electricity price volatility, including state aid, expanded use of long-term power purchase agreements and contracts for difference.

During the previous crisis, the European Union adopted a "market correction mechanism" that would have capped gas prices if European gas benchmark TTF futures exceeded 180 euros ($208) per megawatt-hour under strict conditions, though it was never triggered. TTF briefly surged to near 70 euros per megawatt-hour earlier the week of March 9, before easing to just below 50 euros as of March 11. Even before the escalation, Brussels had been preparing measures to address persistently high energy costs affecting European industry following an informal EU leaders' meeting in February. The European Commission is expected to present proposals at the upcoming European Council summit the week of March 16, alongside potential short-term measures under consideration by member states.