Russia said on Friday that the global energy market “cannot remain stable” without its oil after the United States temporarily allowed sales of Russian crude already in transit, a move that came as energy prices rose amid an escalating war involving Iran, Israel and the United States.Russian economic envoy Kirill Dmitriev said that the US decision actually recognizes the importance of Russian oil supplies to global markets.
‘Humanitarian catastrophe’: Putin asks Trump and Netanyahu to stop Iran war and warns Kremlin aide on camera
“The United States actually recognizes the obvious: without Russian oil, the global energy market cannot remain stable,” Dmitriev wrote on the Telegram application, according to what was reported by Agence France-Presse.Earlier, the US Treasury Department issued a notice “permitting transactions” related to Russian crude oil and petroleum products that had already been loaded onto ships on or before 12.01 a.m. on March 12.
The temporary mandate will remain in effect until April 11.
reconnaissance
How do you think rising global tensions could impact oil markets?
The concession comes as global energy markets face volatility in the wake of US-Israeli strikes on Iran that have plunged the oil-rich Middle East into conflict.Iran has also warned that it may target regional energy infrastructure if its facilities are attacked.A spokesman for the Iranian military’s Central Operations Command, known as Khatam al-Anbiya, said, “We will set fire to oil and gas in the region with the slightest attack on Iran’s energy infrastructure and ports.”
Oil prices rose after the escalation. Brent crude rose 9.2 percent, setting the settlement price at $100.46 per barrel, exceeding the $100 mark for the first time since August 2022. US West Texas Intermediate crude rose 9.7 percent to $95.73.Stock markets also fell as concerns grew about the long-term conflict in the Middle East. Continued US and Israeli strikes on Iran and Tehran’s response have disrupted trade through the Strait of Hormuz, a major route for global oil shipments.Investors were also concerned after US President Donald Trump indicated that preventing Iran from obtaining a nuclear weapon was a greater priority for him than keeping oil prices under control.
