Urals crude hit $116.05 a barrel on April 2—Russia's highest oil price in 13 years—as the Iran war reshapes global energy flows and Washington issues a sanctions waiver for Russian crude.
Urals crude loaded at Russia's Baltic Sea port of Primorsk sold for $116.05 per barrel on April 2, 2026 — the highest price for Russian oil in 13 years and nearly double the $59 per barrel that Russia's Ministry of Finance assumed when it drafted the 2026 federal budget.
The number captures a geopolitical reversal that would have been difficult to predict three months ago. In December 2025, Urals traded below $40 under the weight of expanded G7 sanctions. Then the United States and Israel launched military operations against Iran on February 28, 2026, effectively closing the Strait of Hormuz to a fifth of the world's oil traffic. Russia, the world's second-largest crude exporter, filled the gap — and its price climbed accordingly.
russia oil price · urals crude 2026 · russia economy sanctions
By the numbers: cargoes from Novorossiysk, Russia's Black Sea export terminal, reached $114.45 per barrel in the same April 2 window, according to OilPrice.com pricing data. Russia's total oil export revenues rose to $2.02 billion per week in the 28 days ending April 5 — the highest weekly figure since June 2022, when post-invasion sanctions had not yet fully taken effect, per the Centre for Research on Energy and Clean Air's March 2026 analysis. Every $10 increase in the Urals price delivers approximately $1.6 billion in additional monthly revenue to Moscow's federal budget, according to the Russian Ministry of Finance's own publicly filed sensitivity tables. At $116 per barrel — $57 above the budget assumption — that implies an annual windfall approaching $110 billion if prices hold, before accounting for the production volumes affected by Ukraine's ongoing refinery strikes.
“By the numbers: cargoes from Novorossiysk, Russia's Black Sea export terminal, reached $114.45 per barrel in the same April 2 window, according to OilPrice.com pricing data.”
The United States amplified the dynamic on April 18 by issuing a temporary sanctions waiver authorising the continued delivery and sale of Russian crude oil and petroleum products. The waiver, reported by ABC News and CNN, was designed to prevent a second oil shock layered on the Hormuz disruption. Asian buyers — India, China, and South Korea chief among them — had been absorbing the bulk of Russian crude since late February. The waiver formalised what had been an informal tolerance and removed the risk of secondary sanctions for the tanker operators and insurers handling those cargoes.
Key Takeaways
→russia oil price: The US and Israeli military operations against Iran from February 28, 2026 effectively closed the Strait of Hormuz to about one-fifth of global oil traffic.
→urals crude 2026: The US and Israeli military operations against Iran from February 28, 2026 effectively closed the Strait of Hormuz to about one-fifth of global oil traffic.
→russia economy sanctions: The US and Israeli military operations against Iran from February 28, 2026 effectively closed the Strait of Hormuz to about one-fifth of global oil traffic.
→oil market 2026: The US and Israeli military operations against Iran from February 28, 2026 effectively closed the Strait of Hormuz to about one-fifth of global oil traffic.
Kyiv responded with overnight drone strikes on five Russian oil facilities, including two Samara refineries and a Krasnodar terminal, on April 18–19. The strikes reduced daily Russian oil shipments by an estimated 880,000 barrels, according to Ukraine's drone command — a direct challenge to the economic logic of the U.S. waiver.
The complication embedded in Russia's oil windfall is that it has not translated into domestic economic stability. The Centre for Research on Energy and Clean Air's March 2026 report noted that Russia's non-oil tax revenues fell 12% year-on-year in the first quarter of 2026, as manufacturing contracted, consumer demand softened under 17% annual inflation, and capital continued to exit through informal channels. The Ministry of Finance has used the oil surplus to offset those declines, but the structural dependency has deepened: oil and gas now account for an estimated 46% of federal revenue, up from 38% in 2023.
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russia oil price · urals crude 2026 · russia economy sanctions
The geopolitical sustainability of the windfall is also contested. Euromaidenpress reported in March 2026 that Russia's gold reserves, held partly as a hedge against oil-price volatility, have declined in value as gold prices fell 27% from their 2025 peak. And Ukraine's drone campaign against export infrastructure is accelerating: the Kyiv Independent reported on April 19 that the total reduction in Russian oil shipments attributable to Ukrainian strikes now stands at approximately 880,000 barrels per day — equivalent to roughly 9% of Russia's peak export capacity.
Russia's Foreign Minister Sergey Lavrov said on April 18 that peace negotiations with Ukraine are "not our top priority," a statement analysts at GLOBSEC in Bratislava interpreted as reflecting Kremlin confidence that the current oil price provides a sufficient financial buffer to sustain military operations indefinitely. The next pressure point is April 21: if the Iran ceasefire collapses and the Hormuz blockade intensifies, Urals could push toward $125. If a deal holds and Iranian crude re-enters global markets, Russia's windfall narrows — and Moscow's calculation changes.
Why is Russia's Urals crude oil at a 13-year high?
The US and Israeli military operations against Iran from February 28, 2026 effectively closed the Strait of Hormuz to about one-fifth of global oil traffic. Russia stepped in as an alternative supplier for Asian buyers, and Urals prices surged from below $40 in December 2025 to $116.05 per barrel on April 2, 2026, per OilPrice.com data.
How much extra money is Russia making from high oil prices?
Russia's oil export revenues reached $2.02 billion per week in the 28 days ending April 5, 2026 — the highest since June 2022, according to the Centre for Research on Energy and Clean Air. Russia's Ministry of Finance sensitivity tables show every $10 oil price increase adds approximately $1.6 billion in monthly federal revenue; at $116 vs. the budgeted $59, the annual windfall approaches $110 billion if prices hold.
What did the US sanctions waiver for Russian crude do?
The temporary waiver issued on April 18, 2026 authorised continued delivery and sale of Russian crude oil and petroleum products, removing the risk of secondary U.S. sanctions for tanker operators and insurers handling those cargoes. It was designed to dampen global oil prices inflated by the Hormuz blockade by keeping Russian crude flowing to Asian buyers.
Are Ukraine's drone strikes affecting Russian oil exports?
Yes. Ukrainian drone forces commander Robert Brovdi said on April 19 that strikes on Primorsk, Ust-Luga, Sheskharis, Tuapse, and facilities hit on April 18–19 had collectively reduced Russian daily oil shipments by approximately 880,000 barrels — equivalent to about 9% of Russia's peak export capacity.
