Russian oil revenues surge as Trump turns to Putin to ease global energy crisis

Moscow's oil revenue has risen by nearly $7 billion since the US and Israel launched a war on Iran two weeks ago

12.03.2026

News Desk

Source:https://thecradle.co/articles/russian-oil-revenues-surge-as-trump-turns-to-putin-to-ease-global-energy-crisis

Russia has become the “biggest winner” of the US-Israeli war on Iran, as it eagerly capitalizes on both higher oil prices and desperate customers looking for alternative sources of crude.

According to an analysis by the Centre for Research on Energy and Clean Air, Moscow has received $6.9 billion in fossil fuel revenue since the war in Iran began, a 14 percent increase above February levels.

“If you're a Russian oil trader or a Russian company, you have never earned as much money selling oil as right now because of this supply-chain interruption,” says Nicholas Mulder, an economic historian at Cornell University.

Iran continues to load oil onto tankers for export to China through the Strait of Hormuz. However, Tehran has blocked access to the strategic waterway for oil tankers linked to the Gulf states, which continue to intercept Iranian projectiles headed toward US bases they host and that are being used to attack Iran.

As a result, oil supplies from Saudi Arabia, the UAE, and Kuwait have largely been lost to world markets, causing major price spikes and threatening to spur worldwide economic recession.

The counter the problem, the western-dominated International Energy Agency (IEA) announced a proposal on Tuesday to release 400 million barrels of oil from member states' strategic reserves.

The US has also turned to Russia to replace the lost supply.

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Broadcaster Isabel Webster explains how Vladimir Putin could benefit strategically from the war in Iran through higher oil prices, shifting global attention and potential easing of sanctions.

Washington imposed sanctions on Russian oil following its invasion of Ukraine in 2022. In the past year, it has pressured allies such as India to end Russian oil purchases.

But on Monday, US President Donald Trump spoke to Russian President Vladimir Putin, who offered to re-engage with European states to ease the crisis.

On Thursday, the US Treasury granted a special 30-day permission for Indian refiners to purchase sanctioned Russian crude, on the condition that the tanker was loaded before 5 March.

A Standard Chartered analysis shows that these loaded cargoes have been rapidly bought in the spot market, potentially allowing India to double its purchases of Russian oil from 1 million barrels per day (bpd) to 2 billion bpd in the near term.

The sudden increase in demand caused prices for Russian crude to surge 10.7 percent to $100.67 per barrel as of 1:45 pm ET on Wednesday.

The supply shock in West Asia due to the Iran war caused the price of Russian Urals crude to trade higher than the price of the Brent international benchmark for the first time in history, Oil Price.com noted.

Like oil produced in the Gulf, Russian Urals is a medium sour grade, contributing further to its demand by Indian refiners that typically rely on Gulf supplies.

Even if the US Navy is able to open the Strait of Hormuz by escorting Gulf-linked tankers with warships, supply from West Asia would still remain low, as this would remove Iranian oil from the market, creating new demand for Russian oil from China.

Earlier this week, Tehran warned the west that oil prices will reach $200 a barrel if President Trump and Israeli Prime Minister Benjamin Netanyahu do not end the war.

The US and Israel's war on Iran has punished their Gulf allies, as the Strait of Hormuz closure has forced Saudi Arabia to cut output by 2.0–2.5 million bpd; Iraq by 2.9 million bpd, the UAE by 0.5–0.8 million bpd, Qatar by 0.5 million bpd, and Kuwait by 0.5 million bpd.

These states are seeking to use alternate export routes, such as Saudi Arabia's East–West pipeline, Standard Chartered added. However, the pipeline can transport a maximum of 7 million bpd to the Red Sea and is likely to reach full capacity within a few days.

Other states with large oil reserves, such as Norway, Canada, and some emerging market countries like Nigeria and Colombia, are also benefiting from the war alongside Russia.