By Ian Werther in News — 14 Mar 2026

Hormuz disruption boosts Russia's oil revenue, reshaping global energy markets

The Financial Times reports that, as the Middle East conflict unfolds, Russia has emerged as the biggest beneficiary of the disruption to global oil flows. The blockade of the Hormuz Strait has redirected demand toward Russian crude, with FT citing a surge in Russia’s oil revenue as a result.

Since the blockade began on the 28th of last month, Russia has earned an estimated $1.3 to $1.9 billion in oil export taxes. FT notes that this figure reflects revenue from taxes on oil exports rather than the price of crude itself being higher in the market.

Russian crude oil production (red) and crude oil exports {black). — Representative image for context; not directly related to the specific event in this article. License: CC BY-SA 3.0. Source: Wikimedia Commons.

If Russian oil prices stay in the $70 to $80 per barrel range this month, Russia could accumulate roughly $3.3 to $4.9 billion in additional revenue by month’s end, according to the FT’s calculations. The blockage has effectively reduced Middle East supply and elevated the role of alternative suppliers.

Before the war, Russia’s oil exports had slumped to their lowest levels since Moscow’s 2022 invasion of Ukraine. The Hormuz Strait disruption, which cuts a sizable portion of global crude traffic, has helped Russia position its oil as a substitute for Middle Eastern grades in several markets.

The United States has eased some sanctions on Russian oil to address price spikes. On the 5th, Washington temporarily allowed India to purchase Russian crude. Then on the 12th, the U.S. announced a 30-day window for countries to buy Russian oil and petroleum products that are stranded at sea, temporarily widening global access.

Description from NASA (source):
"NASA's Terra Satellites Sees Spill on May 24
Sunlight illuminated the lingering oil slick off the Mississippi Delta on May 24, 2010. The Moderate-Resolution Imaging Spectroradiometer (MODIS) on NASA’s Terra satellite captured this image the same day.
Oil smoothes the ocean surface, making the Sun’s reflection brighter near the centerline of the path of the satellite, and reducing the scattering of sunlight in other places. As a result, the oil slick is brighter than the surrounding water in some places (image center) and darker than the surrounding water in others (image lower right). The tip of the Mississippi Delta is surrounded by muddy water that appears light tan. Bright white ribbons of oil streak across this sediment-laden water.
Tendrils of oil extend to the north and east of the main body of the slick. A small, dark plume along the edge of the slick, not far from the original location of the Deepwater Horizon rig, indicates a possible controlled burn of oil on the ocean surface.
To the west of the bird’s-foot part of the delta, dark patches in the water may also be oil, but detecting a manmade oil slick in coastal areas can be even more complicated than detecting it in the open ocean.
When oil slicks are visible in satellite images, it is because they have changed how the water reflects light, either by making the Sun’s reflection brighter or by dampening the scattering of sunlight, which makes the oily area darker. In coastal areas, however, similar changes in reflectivity can occur from differences in salinity (fresh versus salt water) and from naturally produced oils from plants.

Michon Scott, NASA's Earth Observatory, NASA Goddard Space Flight Center" — Representative image for context; not directly related to the specific event in this article. License: Public domain. Source: Wikimedia Commons.

Sumit Ritolia, a senior analyst at the energy analytics firm Kpler, says much Russian crude remains afloat and is heading toward Indian ports, with India currently importing about 1.5 million barrels per day and potentially rising toward 2 million barrels per day if the trend continues. He describes the current war as creating a “new maximum winner” in Russia's favor.

For U.S. readers, the developments matter because they affect global oil prices, inflation, and energy security. Any sustained shift in supply routes or sanctions policy can influence gasoline costs, manufacturing costs, and broader market volatility in the United States, while also shaping the calculus behind U.S. energy and foreign policy toward Russia and the wider Middle East. The situation underscores how geopolitical shocks, even when centered far from the United States, can ripple through American energy markets and strategic interests.

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