Russia Doubles Oil Revenues in April to $9 Billion Thanks to Iran War

Russia's oil revenues rose to around $9 billion in April 2026, nearly doubling compared to the previous month. The blockade of the Strait of Hormuz caused by the Iran war that began in February 2026 halts oil shipments through this strategically important route and drives global energy prices higher. Russia benefits considerably as an alternative supplier in this constellation.

Oil Prices Rise Above $84 – Russia Expands Exports

The price for Brent crude – the most important reference grade for international oil trading – climbed to $84 per barrel in early March 2026. The Strait of Hormuz is a waterway between Iran and the Arabian Peninsula, through which approximately one-third of global oil shipments normally flow by sea. Its blockade massively tightens the global supply situation.

Russian seaborne shipments reached 4.11 million barrels per day during this period – the third-largest value since records began. According to data from various market observers, Russia recorded the largest weekly increase in oil revenues since 2023. The exploding demand for Russian oil as a replacement for blocked shipping routes meets a country that has kept its export infrastructure largely intact despite Western sanctions.

Western Sanctions Being Circumvented – Price Cap at $60

Buyers of Russian crude oil are only permitted to use Western services such as transport or insurance if they can demonstrate they have paid a maximum of $60 per barrel. This ceiling was introduced by the EU, G7 states, and Australia in December 2022 to limit Russia's oil export revenues without destabilizing global markets through a complete embargo.

However, Russia has developed alternative export routes and buyers. The country increasingly uses parallel imports and supplies oil to refineries such as Ruwais in the United Arab Emirates. These circumvention strategies enable Moscow to benefit more from current high global market prices than the original sanctions architecture intended.

Additional Billions Expected from Fertilizer and Gas Exports

Beyond oil revenues, experts expect additional earnings from other commodity exports. According to the German Chamber of Commerce and Industry, Russia could achieve up to €8.9 billion in additional fertilizer revenues in a moderate scenario. Thomas Baier, the Chamber's energy expert, points out that together with increased gas costs, additional significant revenue sources emerge.

Higher fertilizer prices also result from disruptions in the Middle East. Iran is a major producer and exporter of petrochemical products, which include fertilizers. When Iranian deliveries fall out or become more expensive, alternative suppliers like Russia benefit.

Long-Term Risks Despite Short-Term Gains

Despite currently rising revenues, medium-term risks are emerging for the Russian economy. Disruptions in the Persian Gulf could lead to shortages of imported goods that Russia obtains through parallel imports – from agricultural products to technology goods. Up to 20 percent of cucumbers consumed in Russia came from Iran.

Russian oil exports themselves could suffer in the medium term, as the country has become more dependent on shipping routes via the Persian Gulf. The involvement of Russian companies in mining projects in the Middle East could be endangered by the escalation. The short-term additional revenues from the Iran war are therefore unlikely to simply translate into a lasting improvement in the economic situation.

Russia's Energy Exports in the Context of Geopolitical Disruptions

The development shows how heavily Russia's economy remains dependent on commodity exports. The doubling of oil revenues within a month illustrates the volatility of this revenue source. It depends not only on production volumes and its own policy decisions, but massively on geopolitical crises in other regions.

For Western buyers of Russian raw materials – particularly in the EU – the Iran war sharpens the dilemma: On one hand, sanctions are intended to limit Russia's revenues; on the other hand, global supply shortages drive prices up and make Russian oil more attractive on the world market. The effectiveness of the sanctions architecture is further weakened by external shocks such as the Hormuz blockade.