Summary
Russian oil is gaining from the U.S.-Israel conflict with Iran, as the U.S. temporarily eases sanctions on Russian oil. This is helping Russia increase its oil sales, especially as the Strait of Hormuz, a critical route for oil shipping, remains closed due to the conflict.
Key Facts
- President Trump announced a temporary easing of sanctions on Russian oil to ease shortages caused by Iran closing the Strait of Hormuz.
- The Strait of Hormuz typically carries 20% of the world's oil and gas, making it a key transport route.
- Russian oil sales increased by 672 million euros ($777 million) in the first two weeks after the war started.
- The conflict began on February 28 with U.S. and Israel strikes in Iran, resulting in the death of Iranian leader Ayatollah Ali Khamenei.
- In response, Iran attacked various targets in Israel and Gulf countries.
- The price of Russian Urals oil rose to around $90 per barrel, up from less than $60.
- Seven tankers carrying Russian oil reportedly changed course from China to India.
- The international benchmark, Brent crude oil, also saw a price increase, rising above $100 a barrel due to the crisis.
