Middle East tensions push Russian oil prices above $116 per barrel

Russian Urals crude surpassed $116 per barrel on April 7, reaching its highest level in 13 years, amid escalating conflict in the Middle East and the closure of the Strait of Hormuz.

As of April 2, Urals crude sold for $116.05 per barrel at the Russian port of Primorsk, while at Novorossiysk it reached $113.45 per barrel, Caliber.Az reports, citing Bloomberg.

Both figures are nearly double Russia’s budgeted cutoff price of around $59 per barrel, with all revenue above this level directed to the National Wealth Fund.

The surge in prices reflects concerns over the partial closure of the Strait of Hormuz, a key route for roughly one-fifth of the world’s oil exports.

Iran effectively blocked the Strait of Hormuz following the start of US and Israeli operations against the country.

The Strait handles roughly one-fifth of the world’s oil and liquefied natural gas shipments.

On March 25, Iranian authorities allowed vessels from friendly countries—including Russia, China, Pakistan, India, and Iraq—to pass through the corridor.

US President Donald Trump threatened further strikes on Iran unless it reached a peace agreement and reopened the Strait by April 7.

By Bakhtiyar Abbasov