Military escalation in the Middle East has intensified after the US struck three Iranian tankers, driving Brent and WTI crude prices higher. This escalating conflict threatens crucial transit routes, leaving global markets bracing for a severe energy crunch.
Global market
WTI rose 0.72% to $92.14 per barrel and Brent increased 0.63% to $96.89 in early Asian trade following US Central Command’s strikes on three Iranian tankers—M/T Downy, M/T Stark 1, and M/T Kylo—near Kharg Island and Jask. According to the international think tank Energy Transitions Commission, the closure of the Strait of Hormuz has disrupted 8% of global oil supply, triggering the most severe energy crisis since the 1973 Yom Kippur War. Renowned economist Nouriel Roubini flagged the worsening conflict with Iran as a top macroeconomic risk threatening the global financial system. Additionally, high fuel prices have spurred a boom in electric motorcycle sales.
Russia & CIS
Russia’s domestic oilfield services market is projected to grow nearly 24% to 3.75 trillion rubles over the 2026–2028 period, driven by rising costs and more complex drilling, even as crude production remains stable at 515 million tons annually. Meanwhile, Russia’s Ambassador to India Denis Alipov condemned external pressure on New Delhi and declared Moscow’s readiness to deliver as much crude oil as India needs for its national development. Concurrently, Russian Deputy Foreign Minister Alexander Grushko confirmed that Russian liquefied natural gas continues to flow into the European Union, despite a general decline in import volumes, while Russia continues to expand its Arctic energy map.
Armenia
US retail gasoline prices spiked to a record $4.15 per gallon following the latest Middle Eastern supply disruptions, Armenian news agency news.am reported citing US officials. While the United States faces severe domestic fuel inflation and the global shipping sector grapples with growing tanker transit risks, Armenia’s internal fuel market remains stable. Under existing EAEU trade agreements, Armenia continues to import duty-free Russian gas and petroleum products at long-term fixed tariffs. This critical energy mechanism successfully insulates local business and retail consumers from the volatile price swings observed in international market price assessments.