Another crisis for Europe’s gas market was avoided late Monday after the Norwegian government intervened to stop a strike that could have significantly cut production from some of the country’s most critical gas fields.

Norway’s Labor Ministry announced late Tuesday that the government took emergency action to intervene in the flagging negotiations between the Lederne union and oil and gas field operators. Workers reportedly returned to their positions while companies and Lederne worked on a settlement, avoiding a potential 56% drop in Norwegian gas exports.

Norway’s Equinor ASA, which operates several of the country’s most prolific gas and oil fields, said work had restarted at the Gudrun, Oseberg South and Oseberg East fields by early Wednesday morning. All fields...