Russia's Urals Crude Plummeted To $50

Trump's deal with Iran has dealt a blow to Russia.

The brief period of high oil prices is coming to an end. The peace agreement between the U.S. and Iran and the subsequent reopening of the Strait of Hormuz immediately eased pressure on global markets, causing oil prices to fall. This was reported by Dialog.UA.

On Thursday, June 25, the premium Brent grade fell to $72. Russian Urals crude plummeted to $50. According to experts, the Russians are forced to offer a discount of $22 per barrel to find buyers. In April, at the height of the war in Iran, Russia was selling its oil at the highest price since 2014—$116 per barrel.

Prices have now fallen by more than half. And experts are certain that this decline will continue. Prices have returned to pre-war levels. This threatens Russia with colossal financial problems—the budget deficit is growing, and there is nothing to cover it.

Experts believe that this fall, following the parliamentary elections, the Kremlin will be forced to make unpopular decisions to stabilize the economy. Under discussion are the introduction of a tax on excess profits, the devaluation of the ruble, and even a radical measure—the freezing and confiscation of the public’s bank deposits.

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