The United States launched retaliatory airstrikes against Iranian coastal targets after a military helicopter was downed, heightening volatility in the Persian Gulf. Despite the military escalation, benchmark crude prices retreated to multi-month lows as data confirmed a significant slowdown in Chinese energy demand.
Global market
International market price assessments showed Brent crude falling 4.38% to $90.44 a barrel, while the US benchmark WTI dropped to $87.13. The decline was primarily driven by the General Administration of Customs reporting that China’s crude imports slumped 29% year-on-year to 7.82 million barrels per day in May. In the Persian Gulf, US President Donald Trump ordered three waves of strikes against Iranian air defenses and radars after a US Army Apache gunship was destroyed by an Iranian Shahed drone near the Strait of Hormuz.
The maritime choke point has now been effectively blockaded for 101 days, disrupting one-fifth of the world’s oil supply. In the United States, national average gasoline prices have stabilized at $4.16 per gallon, representing a 40% surge since the start of the conflict in late February. Concurrently, the Rainforest Action Network reported that global banks provided $906bn in fossil fuel financing during 2025, with JPMorgan Chase contributing $58bn to the sector.
Russia & CIS
The European Union is considering a proposal to delay a planned increase in the price cap on Russian oil, which is currently fixed at $44.10 per barrel. Without a stay, the cap was scheduled to automatically rise to as much as $70 due to a mechanism that adjusts the limit based on the six-month average of international market price assessments. Brussels also proposed new sanctions against 31 Russian banks and 20 third-country oil traders, including financial institutions in Kyrgyzstan accused of facilitating the flow of energy revenues to Moscow.
Ukraine has expanded its campaign of “deep strikes” against Russian energy infrastructure, with swarms of drones hitting oil terminals and ports in St. Petersburg. Two Ukrainian drones were also reported to have crashed into a fuel depot in Latvia. Meanwhile, Russian exports to China continue to rise, with imports from Russia growing over 20% in the first five months of 2026 as Beijing secures discounted supplies amid the Mideast energy shock.
Armenia
While specific domestic price changes were not detailed in today’s reports, Armenia remains exposed to the regional energy crisis triggered by the 101-day blockade of the Strait of Hormuz. The ongoing maritime conflict between Washington and Tehran continues to place immense pressure on transportation costs and corporate profit margins across the EAEU.
Regional stability is further threatened by an expected 38% jump in global fertilizer prices resulting from Gulf supply disruptions, which poses a significant risk to the republic’s agricultural security. As a landlocked member of the EAEU, Armenia’s energy security remains tied to the reopening of Gulf transit routes, through which critical components for the Armenian NPP and regional gas infrastructure are typically sourced.