Gulf oil producers have lost billions in energy revenues since the start of the US-Iran war, but Russia is profiting handsomely. Vladimir Putin's war chest is swelling by as much as $150 million daily from surging oil sales, according to the Financial Times. This windfall stems from higher prices triggered by tanker attacks in the Gulf and Iran's vow to keep the Strait of Hormuz closed, forcing buyers to turn to Russian crude. The conflict has created a perfect storm: Gulf suppliers face disruptions while Russia gains market share at premium prices.

Gulf states' $15bn revenue loss since the war began underscores the geopolitical shift. Iran's new supreme leader has explicitly threatened to maintain the blockade, trapping oil tankers in the region. This creates a captive market for Russian oil, which is now being shipped to India and other buyers at elevated rates. The financial implications are stark: Russia's budget is receiving a direct boost just as Western sanctions pressure its economy, turning conflict into a revenue stream.

For investors, this means Russia's energy sector remains resilient despite sanctions, and the conflict could prolong high oil prices. The situation highlights how geopolitical tensions can redistribute global energy profits, with Russia emerging as a beneficiary while Gulf producers suffer. This dynamic may persist as long as the Strait of Hormuz remains contested, making Russian oil a strategic asset in the region's volatile energy landscape.