The Kremlin has stated that the U.S.-Israeli war on Iran has prompted a significant increase in demand for Russian energy products. This announcement came a day after the U.S. 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 pipeline gas and liquefied natural gas, and is capable of guaranteeing the continuity of all deliveries under concluded contracts.
The conflict in the Persian Gulf, which entered its seventh day on Friday, has all but shut the critical shipping passage of the Strait of Hormuz, cutting off countries worldwide from a fifth of global oil and liquefied natural gas supplies. Russia, mired in its own war launched in Ukraine over four years ago, may stealthily benefit from this new sprawling war in the Middle East.
International Energy Agency (IEA) Executive Director Fatih Birol suggested on Friday that looking to Russia for gas supplies would be economically and politically wrong. Birol, speaking after a meeting of European Commission President Ursula von der Leyen and European Union commissioners on global energy markets, told reporters that one of Europe’s historical mistakes was the overreliance of its energy sources on a single country, Russia.
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 shut down exports within weeks if the Iran conflict continues and drives oil to $150 a barrel. Qatar halted its production of liquefied natural gas on Monday, equivalent to about 20% of global supply and playing a key role in balancing Asian and European markets’ demand for the fuel. Al-Kaabi 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.
On Friday, benchmark U.S. crude surged 4.1% to $84.36 per barrel, while Brent crude, the international standard, gained 1.7% to $87 per barrel, trading near its highest level since April 2024. The global energy market is facing instability and price hikes, with Russia potentially capitalizing on the crisis.
Source: www.aljazeera.com