Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani is visiting Tehran today to negotiate reopening the Strait of Hormuz, driving global oil prices down. Simultaneously, French energy major TotalEnergies has finalized its exit from the Russian Arctic LNG 2 project, transferring its entire stake to Novatek.
Global market
Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani is visiting Tehran today to discuss reopening the Strait of Hormuz with Iranian officials, according to Iranian Foreign Ministry spokesman Esmaeil Baghaei. Following the news of the high-level diplomatic intervention, global benchmark Brent crude fell to $87.46 per barrel, while West Texas Intermediate (WTI) fell to $81.83, despite a fresh report from the UK Maritime Trade Operations (UKMTO) of another tanker being struck by a projectile in the chokepoint. In response to the ongoing transit crisis, Saudi state producer Saudi Aramco increased its oil offerings outside the Strait, implementing ship-to-ship (STS) transfer operations off Fujairah and selling at least 4 million barrels of Arab Medium crude to China.
In North America, Alberta’s Premier Danielle Smith rejected the idea of introducing crude export tariffs on deliveries to the United States as retaliation against the Trump administration’s tariffs, calling such measures “disastrous” for Canada. In corporate earnings, Chinese state-owned offshore giant CNOOC reported a record first-half net profit of 85.8 billion yuan (approximately $12.9 billion), representing a 20% year-on-year surge. Meanwhile, the dry bulk market continued its rally, with the Baltic Dry Index climbing to 3,056 points, driven by a 6.3% jump in Capesize rates to 5,033 points, and Norwegian car carrier Höegh Autoliners ordered six additional dual-fuel LNG-ready Aurora class vessels.
Russia & CIS
French energy giant TotalEnergies has fully exited the Arctic LNG 2 project, transferring its 10% stake to Novatek’s subsidiary LLC NordLine. This transaction increases Novatek’s total stake in the project to 70%, while TotalEnergies retains the right to recover approximately $1.3 billion in shareholder loans. This exit occurs as the Russian currency faces significant pressure, with the euro on Forex exceeding 100 rubles for the first time since March.
On the security front, the Russian Ministry of Defense confirmed high-precision air strikes against the Kremenchug oil refinery in Ukraine and port-associated energy facilities in Odesa region. Simultaneously, Ukrainian forces struck the dry storage facility for spent nuclear fuel at the Zaporizhzhia NPP, prompting Russian Foreign Ministry spokesperson Maria Zakharova to accuse Kyiv of deliberate nuclear blackmail. In the industrial and shipbuilding sector, the fifth Lada-class diesel-electric submarine, “Maloyaroslavets” (Project 677), was officially laid down at the Admiralty Shipyards in Saint Petersburg.
Armenia
Armenia’s economic and political position within regional structures has drawn sharp commentary from Moscow. The Russian Ministry of Foreign Affairs announced that Armenia’s financial contribution to the EAEU budget is a mere 1%, despite the country extracting colossal economic benefits from the union. Russian diplomats emphasized that Yerevan’s potential pursuit of EU membership directly contradicts the long-term interests of the Armenian people. Meanwhile, under preferential EAEU agricultural quotas, Armenia will be permitted to import 67,000 tonnes of meat under duty-free terms.
Despite geopolitical tensions, Armenia’s retail prices for petrol, diesel, and natural gas remained completely stable on August 27. This stability continues to be secured by the country’s integration within the EAEU, which guarantees duty-free and uninterrupted imports of Russian natural gas and petroleum products at stable, long-term contract rates. This bilateral administrative model isolates Armenian consumers from international spot volatility and prevents domestic tariffs from fluctuating based on volatile international market price assessments.