The conflict between Israel and Iran has caused an increase in the price of oil. Ilmari CurlyProfessor of Military Sciences at the University of Turku in Finland, warns that this can benefit the economy of Russia, weakened by the war in Ukraine.
In statements collected by the Finnish media says that Moscow’s economy has begun to stagnate since the beginning of the war in Ukraine. “This, in turn, has a negative impact on Russia’s ability to deal with war. We already know that the country has emptied its money reservations“, asserts.
According to the disseminated information, oil has represented almost 70% of Russian’s income in recent years. Therefore, “an increase in its price would increase the amount of money Russia has accumulated due to oil sales.” This “could be used to maintain its war capacity,” says Käihkö.
“This was already seen when war between Israel and Hamas intensified,” he explains. At that time, “the attention and support of the United States became increasingly towards Israel, which means less support and resources for Ukraine.”
Antti getschief analyst of OP Financial Group, explains that this market concern is a consequence that oil availability could be affected by the conflict. Although he assures that Although Iran’s offer decreased, other countries could compensate for this deficit.
In some moments, Iran has threatened to close the Ormuz narrowwhich is essential for the transport of international oil. “A large part of the shipments to the Middle East passes through the Ormuz Strait. If you suddenly start closing it, it can result in a large price increase,” he says Kari LiuhtoProfessor of Intelligence Research at the University of Turku, in statements also collected by the medium.
According to her, the Middle East represented almost a third of world oil production in 2023 and Iran’s participation was around 5%.
