Regional
Iran war doubles Russia’s main oil revenue to $9 bln in April, Reuters calculations show
For the whole of 2026, Russia has budgeted for 7.9 trillion roubles from the mineral extraction tax.
Russia will see revenue from its biggest single oil tax double to $9 billion in April due to the oil and gas crisis triggered by the U.S. and Israeli attack on Iran, Reuters calculations showed on Thursday.
The Reuters calculation is some of the first concrete evidence of a windfall for Russia, the world’s second-largest oil exporter, from the Iran war, which oil traders say has triggered the most serious energy crisis in recent history.
Iran effectively shut the Strait of Hormuz – a route for about a fifth of global oil and LNG flows – after U.S. and Israeli airstrikes on Iran at the end of February, sending Brent futures shooting well past $100 per barrel.
Russia’s main revenue from its vast oil and gas industry is based on production. Export duty on crude oil has been nullified from the start of 2024 as part of the so-called wider tax manoeuvre, a years-long tax reform of the industry.
According to Reuters calculations based on preliminary production data and oil prices, Russia’s mineral extraction tax on oil output will increase in April to around 700 billion roubles ($9 billion) from 327 billion roubles in March. The revenue is up by some 10% from April last year.
For the whole of 2026, Russia has budgeted for 7.9 trillion roubles from the mineral extraction tax.
The average price of Russia’s Urals crude, used for taxation, jumped to $77 per barrel in March, its highest since October 2023, according to economy ministry data.
That was up 73% from February’s $44.59 per barrel and above the level of $59 assumed in this year’s state budget.
The Kremlin said on Tuesday there were a huge number of requests for Russian energy from a range of different places amid a grave global energy crisis that was shaking the foundations of the oil and gas markets.
Still, there are limits on the windfall for Russia, and economists inside Russia have repeatedly cautioned that 2026 could be a tough year.
Russia ran a budget deficit of 4.58 trillion roubles, or 1.9% of gross domestic product, in January-March 2026, the finance ministry said on Wednesday.
And Ukraine’s attacks on Russian energy infrastructure, with an aim to cripple Moscow’s finances, have also contributed to lower earnings and threaten oil production cuts.
The size of the windfall for Russia will ultimately depend on how long the Iran crisis lasts.
Regional
Qatar denies detaining Iranian pilots, says it found remains of one
The spokesperson said Tehran had yet to respond to an invitation to review details of its operations.
Qatar denied on Saturday that it was holding Iranian pilots, saying they had violated Qatari airspace earlier this year and had failed to respond to attempts to contact them.
A Qatari foreign ministry spokesperson said on X that search and rescue teams later found the remains of one of the pilots and that it had contacted Iran to coordinate a handover.
The spokesperson said Tehran had yet to respond to an invitation to review details of its operations.
Regional
Turkey lays out plans for defence pact with Pakistan and Saudi Arabia
Turkey, which has NATO’s second-largest army, has said the pact with nuclear-armed Pakistan and top oil exporter Saudi Arabia was open to expansion.
Turkey, Saudi Arabia and Pakistan will group senior ministers, hold joint exercises and deepen defence industry cooperation under a military pact signed between the regional powers last week, Turkey’s defence ministry said on Thursday.
The three Sunni Muslim U.S. allies, alarmed by a regional conflagration that has brought Iranian missile fire onto Gulf oil exporters, signed the “Mecca Joint Defence Agreement” on August 7. They said the accord stipulates that an armed attack against any member would be regarded as an attack on all, similar to NATO’s Article 5 collective defence clause, Reuters reported.
At a weekly briefing in Ankara, the defence ministry said the pact’s fundamental goal was to ensure defence and military ties were put on a “more institutional and sustainable” footing.
“Under the accord, strategic political and military mechanisms plan to be established involving the Defence Ministers, Foreign Ministers, and Chiefs of General Staff/Armed Forces Commanders, and that coordination among the three countries will be conducted at the highest level,” it said.
The ministry added that joint military exercises involving land, naval, and air forces, as well as air defence and unmanned systems were planned, in addition to deeper defence industry cooperation.
“The aim is to provide not only product and system supply, but also joint development and production, technology cooperation, and sustainable maintenance and logistics support,” it said, adding that unmanned and autonomous systems, electronic warfare and artificial intelligence capabilities would be prioritised.
Turkey, which has NATO’s second-largest army, has said the pact with nuclear-armed Pakistan and top oil exporter Saudi Arabia was open to expansion — with Egypt as a potential candidate — and did not seek to replace any existing alliances, read the report.
The ministry also said Turkey was participating in meetings in Jeddah aimed at establishing an international coalition to protect Red Sea shipping.
Regional
Iran says no progress on reviving interim peace deal with US
Throughout the conflict, Trump has alternated between threats of escalation and claims that a peace deal is imminent.
Iran and the United States remain at loggerheads over efforts to agree a permanent end to the war in the Gulf, according to a senior Iranian source, who said there had been no progress in talks to revive the interim deal agreed in June and define a time frame to implement it, Reuters reported.
The comments came as U.S. President Donald Trump issued yet another broadside against Iran’s leaders, dealing a further blow to hopes for a resolution to the crisis, following new attacks on shipping in the region on Tuesday.
The deal agreed in June declared an “immediate and permanent termination of military operations on all fronts”, but quickly unravelled, with Trump saying it was “over” on July 7 and Iran’s foreign ministry declaring it “suspended” a week later.
The U.S. accuses Iran of failing to honor an agreement under the deal to reopen the vital Strait of Hormuz shipping route. Tehran says Washington has reneged on its commitments, including lifting a blockade of Iranian ports and releasing frozen Iranian assets.
“One of the issues that is being discussed via mediators is the U.S. returning to the interim agreement and defining a time frame for implementing the commitments. There has been absolutely no progress on this issue,” the Iranian source said.
Trump said on Wednesday that the U.S. has “total control” over the Strait of Hormuz.
But the Persian Gulf Strait Authority, the body Iran set up to manage the waterway, said it remains blocked and will not be reopened until Iran’s conditions are accepted.
“Iran is all talk and no action, the Bully of the Middle East No Longer,” Trump said on his Truth Social platform.
Throughout the conflict, Trump has alternated between threats of escalation and claims that a peace deal is imminent.
Thousands of people have been killed in the conflict, mainly in Iran and Lebanon, since the U.S. and Israel launched attacks on Iran on February 28, read the report.
Iran has struck U.S. assets and infrastructure in countries including Oman, Jordan, Kuwait, Israel, the United Arab Emirates and Saudi Arabia.
The June interim ceasefire agreement set a 60-day period, extendable by mutual consent, within which Iran and the U.S. were expected to reach a final deal limiting Tehran’s nuclear program and lifting U.S. sanctions.
The Iranian source dismissed a report on Wednesday from Turkey’s Anadolu news agency that quoted Pakistani government sources as saying they had agreed to extend that 60-day period.
“There is no talk of an extension because, from Iran’s perspective, there is no period that began and therefore nothing to extend. The United States violated the interim agreement 48 hours after it was reached and withdrew from it a few days later,” the source told Reuters.
The Strait of Hormuz, a narrow waterway between Iran and Oman and the entrance to the Gulf, handled a fifth of global oil and liquefied natural gas flow before the war.
Benchmark Brent crude futures have surged since the start of the war in February, hitting a peak of $126 a barrel, roughly 75% above pre-war levels, with choppy trade reflecting concerns over disruptions to Gulf oil supplies and shifting signals on peace talks.
On Tuesday, in separate incidents, a suspected and a U.S. Navy MH-60 helicopter fired two Hellfire missiles to , the U.S. military said.
Oil prices rose but then steadied in volatile trading on Wednesday, after forecasters cut projections for 2026 oil demand. Brent crude futures were trading at around $88 a barrel and U.S. West Texas Intermediate crude at around $83 a barrel.
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