Middle East commodities’ crisis to temporarily up Russia’s revenues — US analyst
"Oil and natural gas producers are winners," John Kavulich said
WASHINGTON, March 3. /TASS/. A possible increase in the cost of raw materials on world markets caused by the US-Israeli operation against Iran may temporarily result in a hike of incomes on behalf of a number of exporters, including Russia, US political scientist and analyst John Kavulich told TASS.
"Oil prices and natural gas prices will spike, along with precious metal prices (gold and silver), and other commodities (agricultural and mineral). This result has winners and losers, even if temporarily," Kavulich said commenting on possible economic consequences regarding the escalation of tenses in the Middle East.
"The most visible beneficiary from the State of Israel-United States-Islamic Republic of Iran War will the government of the Russian Federation," he stated. "An increase in commodity prices (energy, mineral, agricultural) provides the government with increased revenues, even if temporary."
"Oil and natural gas producers are winners," Kavulich continued. "However, those whose distribution points are within the waters (gulf, ocean, sea) within striking distance of drones, missiles, and rockets launched from the territory of the Islamic Republic of Iran may not necessarily benefit as their exports may be constrained."
"Energy producers on the African Continent and in The Americas will benefit as their locations are distant from the military conflict," the US analyst emphasized.
"Losers will be countries which import commodities, particularly energy, even if the timeline is limited for price increases," Kavulich added.
The US and Israel launched a military operation against Iran on February 28. Major Iranian cities, including Tehran, have been hit. The White House justified the attack by citing alleged missile and nuclear threats from Iran.
The Islamic Revolutionary Guard Corps (IRGC, elite units of the Iranian Armed Forces) announced a large-scale retaliatory operation. There were reports of missiles and drones being launched from Iran, and air-raid alert sirens sounded in the Tel Aviv area. According to the Mehr news agency, US military bases in Bahrain, Jordan, Qatar, Kuwait, the UAE, and Saudi Arabia were also targeted. Regional countries are closing their airspace, and airlines are suspending flights.