Russia economy on the brink as oil deficit reaches new all-time high

Russia’s economic troubles continue, even as oil prices have recently surged due to the increasingly complex geopolitical situation in the Middle East.

However, this price increase masks a deepening financial crisis, as Western sanctions—imposed on Moscow since the start of the war in Ukraine—continue to bite. Gas and oil exports, which account for nearly a third of Russia’s national budget, have significantly declined.

Experts warn that oil prices could spike dramatically if Iran were to block the Strait of Hormuz, a critical chokepoint through which one-fifth of the world’s oil supply passes.

Should Tehran move to obstruct this vital route, analysts at BCS suggest prices could soar to $130 per barrel.

In an effort to bypass EU and G7 sanctions, Moscow is increasingly relying on its so-called “shadow fleet”—a network of unregistered or disguised tankers used to secretly deliver oil across the globe, evading international restrictions and funding Putin's war effort.

(QG - Source: The Daily Express - Picture : © Unsplash)