Source: SFGate
“The Iran war’s disruption of Middle East oil and gas supplies and soaring prices are strengthening Russia’s ability to profit from its energy exports, a pillar of the Kremlin’s budget and a key to paying for its own war in Ukraine. Prices for Russia’s oil exports have risen from under $40 per barrel as recently as December to about $62 per barrel — first on fears of war and then due to interruption of almost all tanker traffic through the Strait of Hormuz, the conduit for some 20% of the world’s oil consumption. Russian oil still trades at a considerable discount to international benchmark Brent crude …. However, Russian crude is now above the benchmark of $59 per barrel that was assumed in the Russian Finance Ministry’s budget plan for 2026. Oil and gas tax revenues account for up to 30% of the Russian federal budget.” (03/04/26)