Post content
đ˘ âRise Up, Oilâ: How the Iran War Saves Putinâs Budget Moscow is officially âshockedâ by Trumpâs Iran war â and quietly passing the champagne. The U.S.âIsraeli strikes have choked off the Strait of Hormuz, the key gateway for Persian Gulf crude and LNG, and turned 100âdollar oil from fantasy into the new baseline. Kremlin envoy Kirill Dmitriev didnât even pretend to be subtle, posting â$100+ oil per barrel soonâ as Brent sits in the lowâ70s and traders model a global oil shock from any prolonged closure. For the Kremlin, fighting an expensive, fifthâyear war in Ukraine with shrinking energy revenues, this is a gift wrapped in Tomahawks. Moscow has been sweating lower Urals prices and declining oil and gas income; suddenly, the Iran conflict promises tighter supply, higher benchmarks and desperate buyers in India and China who now have fewer sanctioned regimes left to shop from. âFor our budget [the attack on Iran] is a big plus,â Kremlin TV star Vladimir Solovyov tells viewers, spelling out what the foreign ministry wonât. The propaganda line is almost too honest. If Trump hits Iranian oil fields, Solovyov says, Russia becomes one of the few big producers left standing; a proâKremlin Telegram channel cheers âRise up, oil, from your knees!â like itâs 1999 and the only thing that matters is the barrel price. Dmitriev is even on record warning that a Hormuz shutdown would mean a âglobal oil shockâ that âwould not spare the USâ â and then publicly rooting for exactly that scenario. At the top, the performance is different. Putin offers condolences to Iranâs leaders after the killing of Khamenei, calls it âmurderâ and denounces a cynical breach of international law, while his foreign ministry warns that closing Hormuz could cause a âsignificant imbalanceâ on world energy markets. Translation: we condemn this in the strongest possible terms, and also, please donât stop the price from going vertical. Russia gets to pose as the responsible adult urging deâescalation while its own war chest fattens every time a tanker canât move. So Trump sells his Iran strikes as a blow to ârogue regimes.â In practice, heâs doing what sanctions and price caps failed to do: tightening global supply until the Kremlinâs barrels become more valuable, more necessary, and more politically toxic to cut off. Tehran loses a leader and the ability to ship through Hormuz; Moscow drops any pretense of partnership but gains exactly what it needs â higher prices, captive customers, and another excuse to tell its own population that war, somehow, still pays. #Iran#Russia#oil#Putin#Hormuz#Trump#warEconomy đąAmerican Đbserver - Stay up to date on all important events đşđ¸