Russia’s daily revenue from fossil fuel exports rose to nearly $588 million in March, a 17 percent increase from February, according to new analysis. This surge is directly linked to disruptions in Gulf oil supplies following the conflict with Iran, which has driven global energy prices higher.
The Centre for Research on Energy and Clean Air (CREA) reports that Russia has capitalised on the instability by increasing its oil and gas supply to global markets at elevated prices. “The longer the crisis goes on, the more it benefits Russia—providing money for drones, weapons, and recruitment,” said Isaac Levi of CREA.
The revenue boost underscores a significant shift in global energy trade patterns. China, Turkey, and India now purchase 90 percent of Russia’s crude oil, a concentration that has grown since Western sanctions restricted other markets. Meanwhile, several European nations continue to rely on Russian natural gas delivered via pipeline and liquefied natural gas (LNG) shipments, maintaining a critical revenue stream for Moscow.
The conflict itself has roiled energy markets. Brent crude oil prices spiked above $100 per barrel after Iranian strikes targeted shipping around the Strait of Hormuz, a vital chokepoint for global oil transit. The Pentagon estimated the first week of military operations cost the United States $11.3 billion. The humanitarian impact has been severe, with the conflict displacing approximately 3.2 million Iranians and 800,000 Lebanese.
This situation highlights how regional conflicts can inadvertently bolster the economies of sanctioned states. As Gulf supply anxieties persist, Russia’s position as a leading energy supplier strengthens, translating directly into increased fiscal capacity for its war effort. The trend points to a prolonged period where geopolitical instability in the Middle East sustains higher commodity prices and continues to redirect export flows toward Asia, with significant implications for global energy security and the financing of the conflict in Ukraine. Watchpoints will include the duration of Gulf disruptions and the durability of the new buyer bloc for Russian crude.
