Russian Oil May Gain Demand Due to Middle East Supply Instability

Experts indicated on March 4 that the escalation of military conflict in the Middle East, particularly Iran's threats to block the strategic Strait of Hormuz, is creating risks for the stability of oil supplies from the region. This instability is increasing the attractiveness of sanctioned Russian oil as an alternative source for buyers. China is cited as an example, having already begun reducing its dependence on supplies from the Persian Gulf by increasing purchases from Russia. The emerging situation opens a window of opportunity for growth in Russian oil exports, despite the existing restrictions.