Oil prices rose on Thursday, recouping some of their heavy losses in the previous session as the possibility of an energy showdown between European nations and Russia overshadowed fears of a recession and rising inflation. Brent crude futures were up 25 cents, or 0.3%. at $88.25 a barrel by 0033 GMT after closing at its lowest level since early February in the previous session. Crude oil futures are up 40 cents, or 0,5% at $82.52 a barrel. The prices have been backed by Russian President Vladimir Putin, and he has threatened to halt the country’s oil and gas exports if European buyers impose price caps.

The European Union proposed just hours later to cap Russian gas prices, raising the risk of rationing in some of the world’s wealthiest countries this winter if Moscow carries out its threat. Russia’s Gazprom has already halted supplies from the Nord Stream 1 pipeline, disrupting a significant percentage of  supplies to Europe .In response to rising energy prices.

Britain’s new Prime Minister Liz Truss will lift the nationwide ban on fracking on Thursday  and  seek to make greater use of its reserves in the North Sea, the Telegraph newspaper reported today. The UK government is expected to announce dozens of new  oil and gas exploration licenses in the North Sea to boost domestic production.

Meanwhile, several central banks  are  expected to start a new round of  rate hikes to fight inflation. The European Central Bank is expected to hike interest rates significantly at Thursday’s meeting. A U.S. Federal Reserve meeting follows on September 21.