EU Moves to Freeze Russian Oil Price Cap Amid Rising Revenues from Iran War

The EU is considering a temporary freeze on the price cap for Russian oil as global prices surge due to the ongoing war in Iran and the blockade of the Strait of Hormuz. The current cap is set at $44.10 per barrel, but experts predict it could rise to around $75 per barrel if not frozen. This move aims to prevent Russia from benefiting from increased oil revenues, which have surged by 62% despite Ukrainian drone attacks on Russian infrastructure. Russia's economy has seen a significant boost in oil revenue, reaching 707.1 billion rubles ($9.9 billion) in May 2026. The EU's 21st sanctions package is expected to be presented in early June, with discussions ongoing about the future of the price cap. The situation reflects the complexities of sanctions and their effectiveness in curbing Russian economic power during the conflict.

Key Points: • The EU plans to freeze the Russian oil price cap to prevent increased revenues amid rising global prices. • Current oil prices have surged due to the Iran war, with Russian oil revenue reaching $9.9 billion in May 2026. • Discussions are ongoing regarding the EU's 21st sanctions package, set for presentation in early June.