Russia expects its oil production to remain flat in 2026 and grow modestly in the coming two years as its energy infrastructure comes under intense drone attacks from Ukraine.

Discounts on Russia’s flagship crude widened for the first time since the start of the Iran war, as shifting expectations over a possible end to the Middle East conflict rattled oil markets.

Ukraine said it struck two major fuel-producing facilities and an oil pumping station in Russia, adding more pressure on the nation’s refinery runs that hit multi-year lows in April.

Ukraine said it hit a major oil refinery deep inside Russia, as Moscow and Kyiv exchanged strikes ahead of Victory Day celebrations.

Russia’s oil tax revenues jumped to a six-month high last month as the Kremlin started reaping the benefits of a crude rally driven by the war in Iran. With oil still trading near $100 a barrel, the windfall is set to continue.

Top US officials spent Monday and Tuesday offering new details on the role the US military will play in helping ships pass through the Strait of Hormuz as part of President Donald Trump’s bid to break Iran’s chokehold over the waterway.

Top US officials spent Monday and Tuesday offering new details on the role the US military will play in helping ships pass through the Strait of Hormuz as part of President Donald Trump’s bid to break Iran’s chokehold over the waterway.

One Iranian oil tanker may have slipped through a US blockade of the Persian Gulf state’s shipping, according to TankerTrackers.com, a firm that uses satellite imagery to monitor vessel movements.

With every day that the war drags on, the shortfall gets bigger and a market reckoning draws nearer.

Ukraine said that it hit a Russian export-oriented refinery and oil-pumping station in Kirishi near the Baltic coast, as Kyiv ramps up attacks ahead of planned Victory Day ceasefires.

Ukraine’s attacks on Russian oil infrastructure climbed to the highest monthly level since December, cutting the neighboring nation’s refinery runs to multi-year lows.

Ukrainian drones struck a major refinery deep inside Russia and again attacked an oil-pumping station nearby, further crippling Moscow’s crude-processing capability.

The United Arab Emirates’ decision to leave OPEC won’t lead to an imminent price war since the Iran conflict has throttled producers’ ability to unleash supplies, Russian Deputy Prime Minister Alexander Novak said.

Ukraine said it hit an oil pumping station deep inside Russia, as well as a sanctioned tanker in the Black Sea, the latest in a wave of strikes on its adversary’s energy infrastructure.

Russia said it has no plans of leaving its alliance with OPEC after the United Arab Emirates’ shock decision to quit the cartel raised questions about its future amid a historic supply disruption caused by the Iran war.

Sooner or later, the US blockade may force Iran to cut oil production.

Polluted rain fell on Russia’s Black Sea city of Tuapse as authorities struggle to extinguish a blaze at local oil facilities following a drone attack, highlighting the environmental effects from the war in Ukraine.

Ukrainian President Volodymyr Zelenskiy said repairs have been completed on the Druzhba oil pipeline, allowing the resumption of Russian oil flows to Europe and paving the way for a much-needed €90 billion ($106 billion) loan.

The Baltic Exchange in London is consulting the shipping market about making changes to its benchmark tanker rate after the Iran war closed the Strait of Hormuz, rendering part of the normal trade route inaccessible.

Russia’s government expects to sell natural gas for several years to China at about a third less than the price paid by Europe, underscoring how a pivot to Asia hasn’t fully offset the loss of most of the country’s Western markets.