AP: Rising energy prices from the Iran war could help Russia pay for fighting in Ukraine

FRANKFURT, Germany (AP) — 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, which has risen above $82 from the closing price of $72.87 on Friday, the eve of the attack on Iran by the U.S. and Israel. 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.

Additionally, the halt in production of ship-borne liquefied natural gas, or LNG, by major supplier Qatar will sharply increase global competition for available cargoes -- including those from Russia.

MORe (no paywall): https://apnews.com/article/iran-war-oil-gas-lng-russia-ukraine-b43d87b37c4a3b29a12198e055786f51

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