Global markets left reeling by Strait of Hormuz fuel crisis, EU says, as Russia expands oil sales

Summary

Russia expands oil sales as EU warns global economy ‘reeling’ from Iran war fuel crisis Russia will supply Indonesia and Japan with crude as both countries look for ways to weather the fuel crisis brought on by the US-Israeli war on Iran. The global economy is “reeling,” and there is “no swift exit” in sight to the standoff in the Strait of Hormuz, EU foreign policy chief Kaja Kallas has said. The blockage of the key shipping corridor has led to wild fluctuations in the markets, with Brent crude briefly swinging to a four-year high of $126 per barrel on Friday, following media reports of US plans to prolong the blockade of Iran. The EU, which imports around 75% of its jet fuel from the Middle East, has been hard hit by the Strait of Hormuz closure. The waterway handles around 20% of global seaborne liquefied natural gas (LNG), oil, and jet fuel flows. In mid-April, International Energy Agency (IEA) Executive Director Fatih Birol warned that Europe had just weeks of supplies left. Brussels has also sharply increased its imports of LNG from Russia in the first quarter of 2026, despite its vow to phase out Russian energy by the end of 2027, according to the Financial Times. Moscow has moved to expand its circle of alternative customers in recent weeks, as well as increasing supplies to regular buyers like India. Indonesia will soon start receiving Russian crude and expects 150 million barrels by the end of this year, Indonesian Energy Minister Bahlil Lahadalia said on Saturday, as cited by state news agency Antara. Japan has also turned to Moscow in search of alternative fuel sources. Japanese refinery Taiyo Oil has bought a shipment of Russian crude from the Sakhalin-2 project, TASS reported on Friday. The first cargo is set to arrive by next week, Reuters said on Saturday. Last month, the Philippines received its first Russian oil shipment in five years after declaring an energy emergency. Moscow has also signed a new oil and gas cooperation deal with Vietnam, and is holding energy talks with Thailand as well.