Brent Crude Soars 55%, Hits $120 as Tuapse Refinery Halts and Russia Cuts Output
Brent crude has surged 55% since the Iran conflict began, peaking near $120 a barrel as Gulf output fell and shipping through the Strait of Hormuz disrupted. Russia halted operations at its Tuapse refinery after an April 16 drone attack and cut April production by 300,000–400,000 barrels per day.
1. Tuapse Refinery Suspension
Operations at Russia’s Tuapse oil refinery were suspended on April 16 after a drone strike damaged processing units, halting exports from one of the country’s key Black Sea facilities.
2. Russian Production Cuts
Russia reduced oil output by an estimated 300,000 to 400,000 barrels per day in April, tightening global supply as the country grapples with logistical challenges and conflict-related disruptions.
3. Iran Conflict Drives Oil Prices
Brent crude has advanced more than 55% since the Iran conflict began, touching nearly $120 a barrel, as Gulf output declined and shipping through the Strait of Hormuz faced significant bottlenecks.
4. Market Implications and Shifts
Limited alternative export routes have intensified focus on supply security, driving renewable energy trusts up 1.2% since hostilities started, while GE Aerospace maintains 2026 profit guidance but warns of higher fuel costs and supply constraints.