Russian Deputy Prime Minister Alexander Novak has directed the Ministry of Energy to draft a government decree that will prohibit gasoline exports beginning April 1, 2026. This decision was announced following a Cabinet meeting focused on the domestic petroleum products market.
The export ban aims to stabilize fuel prices within Russia and prioritize supply for the local market. This move comes amid escalating tensions in the Middle East, particularly following the US and Israeli attack on Iran on February 28, which has intensified concerns over oil supply security.
Oil prices have surged as uncertainty grows over the potential for a ceasefire in the ongoing conflict in Iran. Brent crude was poised for its first weekly drop since February 9 after US President Donald Trump commented that talks with Iran were progressing positively, though he provided no further details. Market participants remain cautious about the optimistic tone of Trump’s remarks.
Meanwhile, an Iranian official described a US proposal, relayed through Pakistan, as “one-sided and unfair,” underscoring the fragile nature of negotiations. Analyst Priyanka Sachdeva from Phillip Nova noted that despite discussions of de-escalation, oil markets are pricing in a prolonged conflict rather than temporary headlines. She warned that any direct damage to oil infrastructure or an extended war could cause prices to spike sharply.
In a significant development, Trump extended an ultimatum for Iran to reopen the Strait of Hormuz or face destruction of its energy infrastructure. Concurrently, the US has deployed thousands of troops to the Middle East, with considerations underway about deploying ground forces to capture Iran’s strategic oil hub, Kharg Island.
