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strikeApr 29, 2026

WATCH: The secret oil deals and drone strikes reshaping the Russia-Ukraine war

Summary

As global energy markets teeter on the edge of chaos, a shadow war is heating up over the world’s fuel supply that could determine the future of the conflict in Eastern Europe. While Russia’s oil revenues recently skyrocketed to a record $9.7 billion a month, effectively bankrolling their military operations, Ukraine has launched a bold new drone campaign to strike Moscow where it hurts most — their energy infrastructure. My name is Joseph Hammond, foreign correspondent for The Washington Times. In this Q&A, I break down the high-stakes energy war, from the controversial U.S. sanctions waivers to the secret oil-for-missile deals shaping the conflict. How is the Middle East crisis affecting the Ukraine-Russia war? The recent crisis in the Middle East, which saw U.S.-Israeli airstrikes and the naval blockade of Iran, as well as Iran’s effort to control the Straits of Hormuz through their own blockade, has resulted in the largest disruption to global energy supply in history, according to the Paris-based International Energy Agency. The Straits of Hormuz sees some 25% of the world’s oil supply and 20% of the world’s liquefied natural gas pass through it. And with that strait cut down, it’s been a massive boon for Russia, which is one of the few countries — as the third largest supplier of petroleum products — one of the few countries prepared and poised to profit from that. Russia has benefited immensely from the disruption in the Middle East and has been able to profit to the order of at least $9.7 billion, according to the International Energy Agency, month-on-month terms, due to the U.S.-led war against Iran. How are sanction waivers boosting Russia’s oil profits? Prior to the conflict in the Middle East, the United States had led sanctions against Russia, specifically targeting its oil industry. In the context of the disruption caused by the war with Iran, the closure of the Straits of Hormuz, the United States has eased those sanctions on Russia in order to offset the impact on the global economy of rising oil prices. These sanction waivers, which allow countries such as India to continue to purchase large quantities of Russian oil, have been a massive boon for Russia. And Russia is now able to fund its war in part from these expanded oil profits. They come at a time when most analysts say the Russian economy was teetering on the brink due to its extended war with Ukraine, now in its fourth year. How is Ukraine responding to Russia’s rising oil profits? What’s interesting is how Ukraine has responded. Ukraine’s response to the rise in Russian oil profits has involved both a political component and a military component. On the political level, they have lobbied the U.S. to remove the sanctions waivers and to reimpose sanctions against Russia. These waivers have allowed India to continue to receive Russian oil. There’s a large series of Lukoil gas stations which are continuing to receive supplies from Russia as a result of these sanctions waivers. And Ukraine has really lobbied very actively against this, and saying that these sanctions waivers need to be removed on the political level. On the military level, they have targeted Russian energy infrastructure where export is the primary motive. You’ve seen drone strikes around oil facilities on the Baltic seaboard, and you’ve seen a large campaign against oil facilities around the Caspian Sea region as well too. This new campaign focuses on hurting Russia’s ability to export oil and to profit from the large spike in oil prices due to the current Middle East crisis. How is Russia responding to Ukraine’s attacks? Russia has struck back in response to Ukraine’s targeting of its energy infrastructure with its own attacks on Ukraine’s energy structure, which have left tens of thousands of people without energy in Western Ukraine, and have also targeted other key electricity and energy infrastructure areas within Ukraine itself. What long-term global shifts could this war create? The long-term geopolitical shift we’re seeing as a result of this is that Ukraine is going to have the opportunity to build new energy relationships and continue to find new global partners. One of the interesting outcomes of the current war in the Middle East is that Ukraine has stepped in to protect Gulf Arab states from Iranian drone and missile strikes. With the know-how they have developed in their long war with Russia, the Gulf states have reached out to Ukraine — counter-drone measure specialists — to those countries. And now in response, Ukraine has announced that they have signed a deal with Gulf Arab states to provide them not only with money and munitions, but importantly, oil and other energy products. This deal is very important because, in the long term, this means Ukraine will continue to have the ability to wage this war and also a stable source of energy and oil that is beyond the range of Russian missile strikes. Click here to receive the daily Threat Status newsletter delivered directly to your inbox. Copyright © 2026 The Washington Times, LLC. Click here for reprint permission. Please read our comment policy before commenting.

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    As global energy markets teeter on the edge of chaos, a shadow war is heating up over the world’s fuel supply that could determine the future of the conflict in Eastern Europe. While Russia’s oil revenues recently skyrocketed to a record $9.7 billion a month, effectively bankroll

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Another ship hit in Hormuz as Houthis add to regional risks A tanker has been struck by an unknown projectile northeast of Oman’s Limah, UK Maritime Trade Operations says on Tuesday - Hormuz was deserted on Jul 21, with no ships observed transiting, data shows.

PHOTO: REUTERS [SINGAPORE] Another tanker was attacked in the Strait of Hormuz as renewed hostilities empty the waterway, while a threat by Houthi rebels to blockade Saudi Arabia in the Red Sea heightened regional maritime risks. The Kaifan, an oil products tanker owned by Kuwait Oil Tanker, was the vessel attacked in the strait, according to security consultancy EOS Risk Group.

The ship was struck by an unknown projectile northeast of Oman’s Limah, UK Maritime Trade Operations said earlier on Tuesday (Jul 21), without naming the tanker. Kuwait Oil Tanker did not immediately respond to emailed requests for comment, and ship tracking data shows Kaifan last signalled its location more than a month ago near Sohar, Oman.

The attack on the Kuwaiti tanker follows strikes in recent days on vessels owned by Dynacom Tankers Management. Hormuz was deserted on Tuesday, with no ships observed transiting, data shows. Iran’s recent spate of attacks has focused on oil tankers shuttling through the strait along the Omani coast, often with their transponders turned off.

Earlier strikes have affected major operators such as South Korea’s Sinokor Group and Greece’s Dynacom, which have been instrumental in sustaining crude flows during much of the war with tankers sailing through Hormuz dark. In the week ended Jul 19, Hormuz crossings averaged seven tankers each day, compared with 16 per day a week earlier, said Rahul Kapoor, global head of shipping analytics and research for S&P Global Energy.

“Ship operators remain increasingly cautious, with risk tolerances continuing to be tested,” he said. An empty Sinokor supertanker, Plata Singapore, that was sailing towards the Gulf of Oman with the aim of reaching Saudi Arabia’s Ras Tanura in the Persian Gulf, deviated from its path on Sunday, according to ship tracking data.

The vessel is currently in the Arabian Sea. The South Korean company did not immediately respond to an emailed request for comment. The threat by Iran-backed Houthi militants to blockade Saudi Arabia’s maritime traffic has added another element of risk.

Shipowners with vessels seeking to transit the Red Sea were advised to review their affiliations with the kingdom, with at least one supertanker in nearby waters switching its broadcast to say that it belongs to the Indian government. The India-flagged supertanker, Desh Viraat, which is half-filled with crude from Fujairah, began sailing southwest earlier this week towards Bab el Mandeb in the Gulf of Aden, signalling it had armed guards onboard.

Soon after the Houthi threat on Monday, it switched that signal to “Govt. of India Await”, making clear that it has links to New Delhi. Desh Viraat’s owner, the Shipping Corporation of India, did not immediately respond to an emailed request for comment.

“Companies maintaining regular Saudi trade should consider their exposure elevated, particularly for vessels calling at Red Sea ports,” maritime risk company Marisks said in a note to clients late on Monday that was seen by Bloomberg News. Even though it remains to be seen whether the Houthis will carry through with their threat, “for shipowners, risks have heightened”, said Anoop Singh, global head of shipping research at Oil Brokerage.

“If you have an alternate voyage to take, then you will take that and avoid those in the region.” BLOOMBERG Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox.

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Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.

Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.

Location: Tehran
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Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.

A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.

Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.

But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.

A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.

The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.

Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.

47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.

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US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.

The US military described the action as a precision operation, while reports note the ship was stationary at the time.

Location: Strait of Hormuz