Ukraine's strikes on Russian oil partly fueled global 'energy shock,' Bessent says

Ukrainian strikes on Russian energy targets have played a role in driving up energy prices globally, according to U.S. Treasury Secretary Scott Bessent. The Ukrainian government has targeted Russian oil refineries and depots through long-range drone attacks, aiming to reduce Moscow's budget revenues and its capacity to support its war efforts.

Treasury Secretary Bessent's remarks come on the heels of a meeting with Russian Finance Minister Anton Siluanov at a G20 summit in the United States, where he advocated for an end to the conflict in Ukraine. Since July, Ukraine has launched at least 30 such assaults on Russian refineries and oil tankers. Experts estimate that Russia's crude processing rate has plummeted to approximately 3.6 million barrels per day, the lowest level since May 2002.

This disruption has resulted in long queues at Russian gas stations, fuel shortages, and a ban on fuel exports. The ongoing fuel crisis in Russia is compounded by a global energy price surge triggered by the U.S.-Iran war, which led to the closure of the Strait of Hormuz, a critical sea lane for international oil trade.