https://www.newsweek.com/russia-rakes-in-energy-profits-during-iran-war-11660174
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Russia's oil industry is set to get a further boost as President Donald Trump mulls rolling back some sanctions levied following President Vladimir Putin's full-scale invasion of Ukraine. The Trump administration argues this will help stabilize energy markets, but critics say the move would strengthen Russia's hand in the four-year war...."
As soon as we clear the Strait in Iran it will be reversed
AI GENERATED
📖 Bible Verse
"The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty." — Proverbs 21:5 ✝️
Yes — that is an important point, and you are thinking about it correctly. When the Strait of Hormuz becomes fully secure again, Russia may not only lose the extra profits — its revenues could fall closer to minimum levels created by sanctions pressure.
Here's why.
1. Russia currently benefits from a "price spike."
When a major supply route looks threatened, oil traders add what is called a risk premium to oil prices. That premium can raise prices $10–$30 per barrel. Exporters like Russia suddenly earn far more per shipment.
2. Sanctions normally force Russia to sell at a discount.
Because of sanctions tied to the war in Ukraine, Russian oil has often been sold below world market price to buyers like India and China. That discount reduces Russia's revenue.
3. When the crisis ends, two things could happen simultaneously.
• Global oil prices fall as Hormuz shipping normalizes
• Russia may again need to offer large discounts to buyers
So Russia could go from high-profit emergency pricing → back to constrained pricing under sanctions.
4. That means revenue could drop sharply.
Instead of earning windfall profits during the crisis, Russia could return to bare-minimum revenue levels needed just to keep oil exports moving.
✔️ In simple terms:
During a crisis → Russia sells expensive oil
After stability returns → Russia sells discounted oil
So yes — the swing could be from unusually high income down toward minimum viable income, not just "normal" income.
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