The Kremlin has stated that the US-Israeli war in Iran has prompted a significant increase in demand for Russian energy products. This declaration came a day after the US Treasury issued a 30-day waiver allowing India to purchase Russian oil currently stranded at sea. Kremlin spokesman Dmitry Peskov told reporters on Friday that Russia has been and remains a reliable supplier of oil and gas, including via pipelines and in liquefied form, amid the ongoing conflict.
The war, which entered its seventh day on Friday, has effectively shut down the Strait of Hormuz, a critical shipping passage, cutting off countries worldwide from a fifth of global oil and liquefied natural gas supplies. Russia, mired in its own war in Ukraine for over four years, may stealthily benefit from this new sprawling conflict in the Middle East, despite the broader geopolitical tensions.
Peskov declined to disclose possible volumes of Russian oil supplies to India following Washington's waiver, which followed months of pressure from the US regime and the imposition of severe tariffs on the South Asian nation to deter purchases of Russian oil. International Energy Agency (IEA) Executive Director Fatih Birol suggested on Friday that turning to Russia for gas supplies would be economically and politically misguided, highlighting Europe's historical overreliance on a single supplier.
Qatar's Energy Minister Saad al-Kaabi told The Financial Times in an interview published on Friday that he anticipates all Gulf energy producers will halt exports within weeks if the Iran conflict continues and drives oil prices to $150 a barrel. Qatar halted its liquefied natural gas production on Monday, equivalent to about 20% of global supply, which plays a key role in balancing demand in Asian and European markets.
Al-Kaabi warned that even if the war ended immediately, it would take Qatar "weeks to months" to return to a normal delivery cycle. He forecast that crude prices could hit $150 a barrel in two to three weeks if ships and tankers are unable to pass through the Strait of Hormuz, with gas prices potentially rising to $40 per million British thermal units. On Friday, benchmark US crude surged 4.1% to $84.36 per barrel, while Brent crude gained 1.7% to $87 per barrel, trading near its highest level since April 2024.
Source: www.aljazeera.com