Iran’s Islamic Revolutionary Guard Corps reported that a second oil supertanker carrying 2 million barrels of crude exploded on a sea mine in the Strait of Hormuz. Meanwhile, fuel protests spread across European cities, while Hungary urged Washington to extend its exemption from sanctions on Russian oil imports.
Global market
Naval forces of Iran’s Islamic Revolutionary Guard Corps (IRGC) reported that a second oil supertanker carrying 2 million barrels of crude exploded after striking a sea mine in the Strait of Hormuz while attempting an uncoordinated transit. Against the backdrop of escalating Middle East shipping hazards, protests against high fuel costs and living expenses spread to Milan, Paris, and Bordeaux, where police deployed tear gas against demonstrators. In South America, Bolivia’s energy crisis worsened as natural gas reserves ran dry due to years of underinvestment. Furthermore, the European Union has spent an additional €100 billion on oil and gas imports this year to offset Middle Eastern supply constraints.
Russia & CIS
Hungarian Prime Minister Peter Magyar urged the US to extend Hungary’s exemption from sanctions on Russian oil imports for another year, citing the precedent of the US-Russia diesel agreement. In regional infrastructure, Kaliningrad Governor Alexey Besprozvannykh stated that Estonian threats to decommission a transit gas pipeline will not impact energy supplies to the region. Concurrently, Ukrainian strikes on energy assets in the Lugansk region cut off electricity to 23 municipalities, including Lugansk. On international trade, Russia and ASEAN accelerated negotiations to expand joint projects in oil, gas, coal, and power generation.
Armenia
The mine explosion hitting a second supertanker in the Strait of Hormuz and spreading European fuel protests highlight acute volatility across international trade routes. Under these conditions, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas imports from Russia and electricity generation at the Armenian Nuclear Power Plant continue at full capacity under long-term agreements within the EAEU, protecting the domestic market from price spikes recorded by international market price assessments.