Russian President Vladimir Putin said on Monday that oil production that depends on shipments routed through the Strait of Hormuz could stop completely within a month, attributing the threat to disruptions caused by the U.S.-Israeli war on Iran. Putin said the conflict has already triggered what he described as a global energy crisis.
According to the president, output tied to the strategic waterway has begun to fall, with regional storage facilities filling up with crude that cannot be moved or that is prohibitively expensive to transport. Oil prices rose above $100 per barrel on Monday, reaching levels not seen since 2022, underscoring market reactions to constrained flows.
The Strait of Hormuz handles roughly one-fifth of global oil and liquefied natural gas shipments, and Putin said the passage has been effectively closed as a result of the Iran conflict. He made his remarks during a televised meeting with government ministers and leaders from Russia's top oil and gas companies.
At that meeting, Putin said Russia had repeatedly cautioned that destabilization in the Middle East could provoke an energy crisis with serious consequences for the global economy. He framed Russia as prepared to re-establish long-term cooperation with European customers if those buyers signaled they wished to return to sustained partnerships.
Putin urged Russian energy firms to take advantage of the current market conditions in the Middle East, while also noting that the recent surge in prices was likely temporary. Oil and gas receipts account for about a quarter of federal budget revenues, he said.
The Russian leader also pointed to the shift in Europe’s purchasing patterns over the past four years, noting Western efforts to sharply reduce dependence on Russian oil and gas following Moscow's war in Ukraine and ensuing EU and G7 sanctions. That loss of the European market, Putin said, pushed Russia to sell energy to Asian buyers at steep discounts.
Finally, Putin said Russia needs clear signals from European nations indicating a willingness to re-engage with Moscow on energy, along with assurances that any renewed cooperation would be sustainable and stable.
Context and immediate market effects
Putin linked the operational disruption in the Strait of Hormuz directly to the regional conflict involving Iran, and tied that disruption to higher prices and constrained transport capacity. The president’s comments highlighted the strained balance between available storage, transport limitations, and near-term pricing dynamics.