Energy price surge linked to Middle East conflict boosts Moscow’s revenues
MARKET INSIDER – Russia has earned roughly $6.5 billion from fossil fuel exports in the two weeks since the war involving United States, Israel, and Iran began, according to new data from energy analysts.
Figures from the Centre for Research on Energy and Clean Air show that Russia generated about €6 billion (approximately $6.5 billion) from exports of oil, gas, and coal since the conflict started on Feb. 28.
The spike in revenue comes as global energy prices have surged. CREA estimates Russia earned an additional €672 million (about $730 million) in March so far due to higher prices, with around €625 million (roughly $680 million) of that increase coming from oil sales alone.
The jump in earnings highlights how geopolitical shocks can benefit major commodity exporters. Russia’s energy exports are a crucial component of the state budget and help finance government spending, including its ongoing war in Ukraine.
The figures were released after U.S. President Donald Trump indicated Washington may consider easing sanctions on Russian oil to help stabilize global markets as energy prices surge amid the Middle East conflict.
The announcement coincided with a warning from the International Energy Agency, which said the war has cut oil and gas production in the Persian Gulf by at least 10 million barrels per day, creating what the agency described as “the largest supply disruption in the history of the global oil market.”
Advocates of maintaining sanctions argue that relaxing restrictions could significantly boost Moscow’s income. According to sanctions campaigner Alexander Kirk from environmental group Urgewald, higher prices combined with looser sanctions would allow Russia to sell its crude at much better margins.
Before the Iran conflict erupted, Russian energy revenues had actually been declining. The IEA reported that income from crude oil and refined products fell in the month prior to the war, reaching its lowest level since Russia’s invasion of Ukraine in 2022. The drop was driven partly by reduced exports to India and disruptions to pipeline shipments to Central Europe.
Now, however, the Middle East crisis is reversing that trend. As oil prices climb and global supply tightens, Russia—despite sanctions—appears to be one of the immediate financial beneficiaries of the turmoil in global energy markets.
