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Monday, 6 April 2026

How the Iran War has Putin “Smiling to the Bank”—and why He May Quietly Wish It Never Ends

 

How the Iran War has Putin “Smiling to the Bank”—and why He May Quietly Wish It Never Ends

While the world watches the conflict between the United States, Israel, and Iran unfold, an unexpected geopolitical consequence has emerged: the war is indirectly benefiting Russia, providing Vladimir Putin with strategic breathing room and financial relief even as his own war in Ukraine grinds on.

A Strategic Relationship Turned Opportunistic

Russia and Iran have long maintained a partnership based on shared opposition to U.S. Influence, economic cooperation, and military ties. During the Ukraine war, Tehran supplied Russia with drones and missile technology that helped sustain Moscow’s operations. In turn, Russia has deepened cooperation with Iran, including sharing intelligence and battlefield data that Tehran can use in the Middle East conflict.

While Russia has avoided direct military involvement in the Iran war, its logistical and informational support has helped Tehran defend against U.S. and Israeli forces. This cooperation gives Moscow a foothold in a key region without committing its own troops.

Higher Oil Prices & Budget Relief

One of the most tangible ways the Iran conflict benefits Putin’s Russia is through global energy markets disruptions to Middle East oil and gas supplies have pushed prices upward. Higher oil prices translate into increased revenues for Russia, a major energy exporter, helping offset economic strains caused by sanctions and the prolonged war in Ukraine. According to analysts, this wind fall has eased pressure on Russia’s federal budget, buying Moscow more time to sustain its military efforts.

This boost comes at a critical moment: before the Iran conflict. Russia faced fiscal challenges due to war time spending and restricted access to global markets. Higher energy income now helps fund government operations and reduces the urgency of austerity measures.

Diplomatic Diversions and Western Distraction

The Iran war has also shifted global diplomatic attention. The United States and its allies have been forced to divert political capital and military planning toward the Middle East, which in turn dilutes focus on Ukraine.

Analysts note that Washington’s engagement in a new theater of conflict makes it harder for Kyiv to secure consistent levels of military and economic support, potentially easing pressure on Moscow’s warfront.

Even though Western nations continue to support Ukraine, the broader geopolitical landscape has become more complex. Competing crises strain resources and political will, a situation that Russia can exploit to its advantage.


A Calculated Calculus, Not Open Celebration

It’s important to be precise: Putin is not publicly celebrating war or advocating for its continuation. Russia’s official stance has been cautious, condemning U.S. and Israeli strikes while stopping short of direct military intervention. Moscow’s support for Tehran has been framed in diplomatic and strategic terms rather than outright military escalation.

Long-Term Risks Remain

Despite these short-term benefits, experts warn that deepening ties with a war torn Iran  is not without risks. A protracted Middle East conflict could eventually destabilize regional balances and complicate Russia’s broader foreign policy goals. Moreover, reliance on energy revenues ties Russia’s fortunes to volatile markets, which can swing unpredictably.

Conclusion

While no leader publicly wishes for war to continue, the on going conflict involving Iran has, in several ways, played into Russia’s strategic interests.

For Putin, these outcomes can provide a measure of tactical advantage in a complex international environment, one where conflicts in distant regions increasingly intersect, and where strategic patience can translate into geopolitical gain.


Read More  How Extra Refinery Capacity Could Have Boosted Nigeria’s Revenue during the Iran War and Why Tackling Corruption Is Essential



Iran Now Threatening To Close Bab Al-Mandeb Strait After Trump Threats

 


Ali Akbar Velayati, a counselor to Iran’s new supreme leader Mojtaba Khamenei, claimed in an English-language post on X that the U.S. opposition “views Bab al-Mandeb as it does Hormuz”—the vital oil-transport route Iran has essentially closed to sea commerce as the conflict with the United States and Israel continues.

Iran does not border the Bab al-Mandeb Strait, but Yemen does, and Iran has strong ties to the Houthis, a militant group in Yemen that carried out numerous attacks in the Red Sea in 2023 and 2024 against ships connected to Israel in retaliation for the Gaza conflict.

The Houthis began launching missiles at military targets in Israel in late March.

The closure of the Strait of Hormuz has caused global oil prices to skyrocket and has pushed average gasoline prices in the U.S. above $4 per gallon, according to GasBuddy data.

An Iranian official threatened the Bab al-Mandeb Strait, a narrow waterway dividing Yemen from Africa and providing a critical trading route from the Red Sea, if the U.S. “dares to repeat its foolish mistakes,” threatening further disruptions to global trade The statement came hours after President Donald Trump again threatened Iran’s power plants and bridges over Iran’s closure of the Strait of Hormuz.

Today, the unified command of the Resistance front views Bab al-Mandeb as it does Hormuz,” Velayati wrote. This could refer to Iran’s “Axis of Resistance,” the loosely aligned groups of militias and other groups supported by Iran, which include the Houthis in Yemen, Hezbollah in Lebanon and Kata’ib Hezbollah in Iraq. “If the White House dares to repeat its foolish mistakes, it will soon realize that the flow of global energy and trade can be disrupted with a single move,” Velayati added.


In WHY IS THE BAB AL-MANDEB STRAIT IMPORTANT?

The closure of the Bab al-Mandeb Strait could further disrupt global trade, blocking yet another chokepoint for the petroleum exporting nations to ship oil and natural gas out of the region. An estimated 4.1 million barrels of petroleum products traveled through the strait per day in 2024, according to the U.S. Energy Information Agency. In comparison, about 20 million barrels traveled through the Strait of Hormuz in 2025, according to the International Energy Agency. The Bab al-Mandeb Strait is one of the alternative routes for petroleum exporters to ship oil to Asia. About 7 million barrels of oil is now shipped to the Saudi Arabian city of Yanbu, a port on the Red Sea, through a pipeline, ABC News reported citing data from maritime intelligence firm Kpler. The oil that reaches Yanbu then transits through the Red Sea and the Bab al-Mandeb Strait.

$150 per barrel. That’s how high oil prices could climb if the Strait of Hormuz remains closed, analysts at JPMorgan told Reuters last week. In the short term, the closure could spike oil prices to $120-$130 per barrel—up from Sunday’s price of $109.05 per barrel. The price could reach higher if the disruptions continued through mid-May, according to the analysts. Closure of the Bab al-Mandeb could contribute to even greater price spikes, ABC News reported citing JPMorgan analysts. Weeks earlier, Iran warned the price for oil could top $200 per barrel if the war continued.

The Houthis have not attacked vessels in the Bab al-Mandeb yet, instead targeting Israel with missiles, but analysts who spoke to Politico and Al Jazeera predicted the group could start targeting ships in the strait, similar to the campaign they undertook in recent years during the Gaza war. Earlier in March, Iran’s state-affiliated Tasnim News Agency quoted an Iranian military source that threatened “insecurity” in the Bab al-Mandeb and Red Sea if the U.S. struck Iran’s Kharg Island. Outside of oil, the Bab al-Mandeb, located on the sea route to Asia after passing through the Suez Canal, sees about 12% of all global trade, the Associated Press reported. English language post on X, Ali Akbar Velayati, an advisor to Iran’s new supreme leader Mojtaba Khamenei, said the U.S. opposition “views Bab al-Mandeb as it does Hormuz”—the key oil-transport route Iran has effectively closed to maritime traffic as the war with the U.S. and Israel drags on.

Although Iran does not border the Bab al-Mandeb Strait, Yemen does, and Iran is closely allied with the Houthis, the Yemeni militant group that previously conducted dozens of strikes against Israel-linked vessels in the Red Sea in 2023 and 2024 in response to the war in Gaza.