Ukrainian drone strikes targeted the Ust-Luga terminal overnight, with air defenses intercepting 31 drones but failing to prevent a significant fire that forced an immediate halt to loadings. Primorsk port also reported damage, prompting authorities to suspend operations pending safety inspections and repair plans.

Before the attacks, Ust-Luga and Primorsk collectively handled about 1.72 million barrels per day, or roughly 45% of Russia’s seaborne crude exports. The dual outage has created a critical bottleneck in Baltic export capacity, disrupting major supply routes to global markets.

The sudden reduction in Russian crude flow is expected to sustain upward pressure on international oil prices and prompt buyers to seek alternative sources and routes. Major oil producers stand to gain from tighter benchmarks while the Russian budget faces a revenue shortfall ahead of looming fiscal pressures.