Kremlin spokesman Dmitry Peskov told reporters on Friday that the US-Israeli war on Iran has prompted a significant increase in demand for Russian energy resources. This statement came a day after the US Treasury issued a 30-day waiver allowing India to purchase Russian oil currently stranded at sea. Peskov emphasized 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 deliveries under existing contracts.
The conflict, which entered its seventh day on Friday, has left the Strait of Hormuz—a critical shipping passage—virtually shut, 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 war in the Middle East, despite ongoing geopolitical tensions.
International Energy Agency (IEA) Executive Director Fatih Birol suggested on Friday that turning to Russia for gas supplies would be economically and politically wrong. Birol stated that one of Europe's historical mistakes was its overreliance on a single country, Russia, for energy sources, and while the war has caused logistical disruptions, he claimed there is "plenty of oil" in the global market.
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 prices to $150 a barrel. Qatar halted its liquefied natural gas production on Monday, equivalent to about 20% of global supply. Al-Kaabi warned that prolonged conflict would impact GDP growth worldwide, lead to higher energy prices, shortages of products, and a chain reaction affecting factories.
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. Al-Kaabi forecast that if ships are unable to pass through the Strait of Hormuz, crude prices could hit $150 a barrel in two to three weeks, with gas prices rising to $40 per million British thermal units, and even if the war ended immediately, it would take Qatar weeks to months to return to a normal delivery cycle.
Source: www.aljazeera.com