Global crude oil prices breached $103.3 per barrel following the resignation of Iran’s oil minister and China’s total suspension of fuel exports. Concurrently, Washington is evaluating the market impact of potential secondary sanctions against major buyers of Russian hydrocarbons, while global gasoline vehicle sales dropped below 50% for the first time.
Global market
Brent crude prices surpassed $103.3 per barrel following military escalations in the Middle East, where Iran’s IRGC Navy targeted seven oil tankers in the Strait of Hormuz over five days, Fars reported. Concurrently, Iranian Oil Minister Mohsen Paknejad resigned, according to Mehdi Tabatabaei, deputy chief of communications for the Iranian presidential administration. The resulting fuel price shock caused global sales of gasoline-powered vehicles to fall below 50% for the first time in history. In Europe, supply pressures mounted as China suspended all fuel exports for October, while US President Donald Trump demanded Germany and France release 120 million barrels of diesel from strategic reserves or risk a US fuel export ban.
Russia & CIS
Washington will decide on secondary sanctions against major buyers of Russian oil and gas after evaluating potential market disruptions, US Energy Secretary Chris Wright told CBS News. Wright added that a peaceful settlement in Ukraine would cause global energy prices to drop sharply. On Russian domestic markets, cybersecurity firm F6 uncovered a network of fraudulent websites selling fuel, while energy crews worked to restore electricity across three districts in Primorye following power grid failures. Meanwhile, the UK Business Department commenced work on import tariffs targeting Chinese electric vehicles, according to The Times.
Armenia
Surging Brent crude prices above $103.3 per barrel and the resignation of Iran’s oil minister remain a primary focus for Armenian energy analysts, who are assessing potential risks to Eurasian supply lines. Despite severe volatility in international fuel markets, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas shipments from Russia and operations at the Armenian Nuclear Power Plant continue at full capacity under long-term EAEU trade agreements shielding domestic consumers from price spikes recorded by international market price assessments.