Putin warns of potential oil supply disruption, Iran conflict disrupts global energy flow

LootboxPhobia · 2026-03-09T18:55:36+00:00

Russian President Putin warns that oil production in the Strait of Hormuz could cease within a month, intensifying the global energy crisis, with oil prices reaching $100 per barrel. Russia is prepared to resume energy cooperation with Europe, but awaits a signal from the other side.

LootboxPhobia

2026-03-09 18:55:36

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Investing.com – Russian President Vladimir Putin on Monday said that oil production relying on the Strait of Hormuz could come to a complete halt within a month, as the US and Israel’s war with Iran has triggered a global energy crisis.

Putin warned that oil output dependent on this strategic waterway has already begun to decline, with storage facilities in the region filling up with oil that cannot be transported or is extremely expensive to move.

On Monday, oil prices rose above $100 per barrel, reaching the highest level since 2022. The Strait of Hormuz carries about one-fifth of the world’s oil and liquefied natural gas flows but has effectively been closed due to the Iran conflict.

During a televised meeting with government officials and leaders of Russia’s major oil and gas producers, Putin stated that Russia has repeatedly warned that instability in the Middle East could lead to an energy crisis with serious impacts on the global economy.

The Russian president said that as the world’s second-largest oil exporter and the largest natural gas reserve holder, Russia is ready to resume cooperation with European clients if they wish to return to long-term partnerships.

Putin said Russian companies should take advantage of the current Middle East situation, although he noted that the price surge might be temporary. Oil and natural gas revenues account for about a quarter of the federal budget.

After the war in Ukraine and subsequent sanctions by the EU and G7, Western countries have significantly reduced their dependence on Russian oil and gas over the past four years. Losing the European market has forced Russia to sell oil and gas at steep discounts to Asia.

Putin stated that Russia needs signals from Europe indicating they are ready and willing to cooperate with Moscow, and that energy cooperation will be sustainable and stable.

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