The UK’s Financial Times reports that, as the war in Iran pushes up international oil prices, Russia is earning about $150 million (approximately 590 million ringgit) more per day from oil sales, making it the biggest winner amid the Middle East conflict.
According to the report, the world’s critical energy chokepoint, the Strait of Hormuz, is practically closed, causing surging demand for Russian oil from India and China. So far, Moscow has already gained a windfall of about $1.3 billion to $1.9 billion from oil export taxes. The U.S. had earlier loosened sanctions on Russia and reduced pressure on India to buy Russian oil, prompting a large number of oil tankers to head for the Indian Ocean.
Financial Times, based on industry data and analyst opinions, estimates that the Kremlin could gain an additional $3.3 billion to $4.9 billion in extra revenue by the end of March. This estimate is based on the price of Russian Urals crude averaging $70 to $80 per barrel this month; in contrast, the average price was $52 per barrel in the previous two months.
Moscow’s situation can be described as a turnaround. Before the outbreak of the war in Iran, Russia was in trouble due to continued declines in oil prices and U.S. pressure on India’s purchase of Russian oil.
The report indicates that the Iran war has created opportunities for Russia, enabling Moscow to further control the energy market while Gulf states are unable to export oil.
Efforts to Isolate Moscow May Be Undone
Russian President Putin stated on the 9th that the energy market is moving toward a “new pricing reality,” and he also proposed to resume energy exports to Europe. The Kremlin later announced that Putin had a “productive dialogue” with U.S. President Trump. Trump subsequently mentioned the possibility of lifting sanctions on certain unnamed countries “to reduce oil prices, until the situation returns to normal.”
This situation has unsettled U.S. allies. A major energy company’s research pointed out that if Middle Eastern supply disruptions persist, European governments could face pressure to postpone the imminent Russian liquefied natural gas (LNG) ban, potentially causing years of efforts to isolate Moscow to be undone. (News source: Central News Agency)