War with Iran fuels Russian oil boom — and trouble for Ukraine
WASHINGTON— As disruptions to energy infrastructure increase demand for Russian exports and the world turns its attention to the Middle East from Moscow’s war in Ukraine, Russia is emerging as one of the few countries to benefit first economically from the war with Iran.
The United States and its European counterparts imposed heavy sanctions on Russia in March 2022, less than a month after Russian President Vladimir Putin’s full-scale invasion of Ukraine. Experts say this restricts Russia’s exports, depriving Putin of at least $500 billion from his war effort. But last week, as President Trump’s war in the Middle East choked energy markets around the world, the White House began to ease its restrictions on Moscow.
“Helping Russia is a treasonous act,” said California Representative Ted Lieu (D-Torrance). said in xHe demands that the Trump administration reverse course. “Russia is providing Iran with intelligence information that will help Iran target American forces.”
Crude droplets rained down on Tehran after Israeli airstrikes destroyed oil depots, enveloping the Iranian capital in thick smog. Iranian counter-attacks also targeted refineries and oil fields in Saudi Arabia and Bahrain. The increase in crude oil prices and the almost complete halt of traffic in the Strait of Hormuz caused energy importers to look for alternative sources.
These increases give Russia, one of the world’s largest oil and gas exporters, a rare advantage. After spending about ten years The most sanctioned country in the world Following his aggression against Ukraine, Putin is finally starting to gain some influence in global markets.
“In the current economic situation, if we refocus on markets that need increased supply, we can gain a foothold there,” Putin said at a meeting in the Kremlin on Monday, according to Russian state media. “It is important for Russian energy companies to take advantage of the current situation.”
Published by the Treasury Department on March 4 30-day temporary waiver It allows Indian refiners to buy Russian oil. The Trump administration’s call was described as a way to ease demand for Middle Eastern oil, but was criticized on the grounds that reversing sanctions on Putin amounted to denying him the capital needed to finance his invasion of eastern Ukraine.
After Trump said on Monday he would further lift sanctions on oil-producing countries to ease trade friction and restore additional oil and gas supplies, Moscow is now poised to press that advantage even further. The only countries that impose US oil sanctions are Russia, Iran and Venezuela.
“So we have sanctions on some countries. We’re going to lift those sanctions until this situation gets better,” Trump said at a news conference at his golf club in Doral, Fla.
A surprise concession came to Moscow Reports show Russia is helping Iran It targets US personnel.
Trump’s announcement came after an hour-long unscheduled meeting with Putin about the situation in the Middle East.
The war also paved the way for Russia to make gains in Ukraine; as hostilities divert global attention away from Kiev and Russia struggles to hold back the massive Russian army. US-brokered talks between the two foes have been set aside as Washington shifts its focus to the war in Iran.
“Currently the priority and all attention of partners is focused on the situation around Iran,” Ukrainian President Volodymyr Zelensky said. said in x. “We see that the Russians are trying to manipulate the situation in the Middle East and the Gulf region in favor of their own aggression.”
Putin is unlikely to intervene militarily on Iran’s behalf, according to Robert English, USC’s international foreign policy expert. Instead, Putin is expected to play his position carefully, reaping the economic dividends and keeping a tight focus on Ukraine at a time when key air defense systems are being diverted from Ukraine to the Persian Gulf.
“Russia is winning the Iran-US-Israel war, at least so far. Oil and natural gas prices have soared, filling Putin’s Ukraine war chest,” he said. “Russia is gathering forces for a major spring offensive in Eastern Ukraine, and it’s not even front page news.”
Ukraine has sent anti-drone teams and ordered anti-drone experts to return from their war with Russia to help Western allies thwart Iranian attacks. Zelensky’s loyalty may not pay off, English said.
“When will Ukraine see the benefits of helping the United States with anti-drone technology? Apparently not anytime soon,” he said.
Even a disruption in Gulf energy supplies lasting a few weeks could bring the biggest windfall to Russia, Associated Press reported, citing energy analysts.
The economic turmoil caused by the war exposed vulnerabilities in Europe’s energy system, especially its dependence on Russian fuel.
Despite the sanctions, the European Union remains a major buyer of Russian natural gas and crude oil. Russian gas accounted for approximately 19% of EU gas imports in 2025. Allied Europeans have agreed to completely halt imports of liquefied natural gas, oil and pipeline gas from Russia by the end of 2027.
Putin said Monday he did not want to save the European market as U.S.-Israeli escalation and Iranian retaliation blocked oil production and transportation. The Russian President instead suggested shifting volumes from the European market to “more promising regions” such as the Asia-Pacific region, Slovakia and Hungary, which he said were “reliable counterparties”.
European leaders have been criticized for being “confused, sidelined and divided” since the start of hostilities in late February. Europe, left out of initial military planning by the United States and Israel, entered the conflict with only 30 percent of its gas storage capacity, the lowest in decades. The British said European leaders were fighting over internal divisions and rivalries rather than bold action.
“The underlying cause of much of this friction is sky-high energy prices, with Europe now struggling more than ever to find affordable alternatives to cheap Russian oil,” English said.
Rising energy prices and shifting world attention risk strengthening the Kremlin at a critical moment in the war in Ukraine, European Council President Antonio Costa told European leaders in Brussels on Tuesday.
“So far there is only one winner in this war,” Costa said. “Russia.”
