Russian President Vladimir Putin stated that the ongoing U. S.-Israeli war against Iran has led to a global energy crisis, warning that oil production that relies on the Strait of Hormuz could come to a halt soon. He emphasized that Russia, being the second-largest oil exporter and the largest holder of natural gas reserves, is willing to cooperate with European customers if they are ready to return to long-term partnerships. However, Western powers have significantly reduced their dependence on Russian oil and gas due to sanctions related to the war in Ukraine.
This loss of the European market has forced Russia to sell oil and gas at reduced prices to Asia. In a televised meeting with oil and gas officials, Putin noted that the instability in the Middle East, which he had previously warned could lead to an energy crisis, has now occurred. He reported that oil prices have risen to over $100 per barrel, the highest since 2022, and that oil production linked to the Strait of Hormuz is already declining.
Putin urged Russian companies to take advantage of this situation, though he indicated that the price surge might be temporary. G7 nations expressed readiness to respond to rising oil prices but did not commit to releasing emergency reserves. Putin also instructed the government to consider redirecting Russian oil and gas supplies away from Europe.
With information from Reuters
