"Certain industries would have to be shut down if there is not enough gas and that pretty much is a prelude to potential gas rationing in the country, which is now one step away," said German Economy Minister Robert Habeck on Friday.

Also read: Germany’s Habeck: Gas is from now on in short supply in the country

FX implications

The news fails to move a needle when it comes to EUR/USD as the major currency pair grinds higher around 1.0540 heading into European session. However, chatters over the global recession gains momentum due to the German policymakers' comments, which in turn should weigh on the market sentiment and underpin the US dollar's safe-haven demand.

Read: EUR/USD advances towards 1.0550 despite escalating hawkish Fed bets