US-Israel conflict with Iran boosts Russia, Ukraine's economy: Report
What's the story
The ongoing United States-Israel conflict with Iran has inadvertently benefited both Russia and Ukraine. Russia is reportedly making up to $150 million a day due to the spike in oil prices caused by the conflict. Meanwhile, Ukraine's drone warfare technology is now sought after in West Asia, bringing both diplomatic and financial benefits to the country, according to various media reports.
Economic impact
Surge in oil prices benefits Russia
The United States-Israel offensive against Iran has led to a surge in Russian oil prices, whereby Russian Ural crude oil has jumped from $58.9 to $105.77 per barrel since the conflict began. The closure of the Strait of Hormuz, a major oil transit route, has resulted in a global supply shortage of up to 20-25%. This shortage has further increased demand for Russian crude oil and pushed prices higher.
Diplomatic gains
Ukraine's drone warfare technology in demand
Ukrainian President Volodymyr Zelenskyy has linked the two conflicts, accusing Iran of supplying Shahed-type drones to Russia for use against Ukraine. He has also offered assistance to countries in West Asia under attack. At least 11 countries, including Bahrain and Saudi Arabia, have sought help from Ukraine to protect themselves from Iranian drones.
Strategic move
Potential security partnerships for Ukraine
Ukraine has reportedly sent interceptor drones and teams to Saudi Arabia, Qatar, and the United Arab Emirates. According to the Times, the country hopes to secure security partnerships with these nations by proving its drone-specific air defense capabilities. Although no commercial deals have been finalized yet, the potential market for drone defenses could be lucrative for Ukraine.