British News Agency

According to a statement from the Russian Presidency, Russian President Vladimir Putin met with representatives of the energy sector and officials to discuss the effects of tensions in the Middle East on the global fuel and energy complex.

Pointing to the inevitable consequences of instability in the Middle East, Putin said: "We clearly stated that attempts to destabilize the situation in the Middle East would inevitably threaten the global fuel and energy complex. Increasing oil and gas prices, restricting supply, and disrupting long-term investment plans... It seems that this is exactly what is happening."

Emphasizing that logistical problems are affecting the entire world, Putin stated:

"Today we see logistical problems in hydrocarbons and disruptions in transportation routes. This situation has an extremely negative impact on global production chains and the entire system of international economic relations. Supply disruptions are followed by rising inflation; not only the oil and gas sector but also the production of industrial goods is being affected."

Referring to the strategic importance of the Strait of Hormuz with numerical data, Putin said: "Last year, about one-third of the world's seaborne oil exports—around 14 million barrels per day—passed through the Strait of Hormuz. This route is now effectively closed. Due to the inability to use the strait, there is a risk that oil production could come almost to a complete halt next month. Storage facilities in the region are filled with oil that cannot be exported."

The Russian leader added that alternative routes will not be a short-term solution: "Completely redirecting Middle Eastern oil supply without using the Strait of Hormuz is not realistic at this time. Changing logistics would not only take a long time but would also require massive infrastructure spending and high political risks."