Russian oil falls to $42 a barrel — the same price as before the Middle East war
Russian Urals crude has dropped to $41.66 per barrel in early July 2026, returning to pre-war levels after peaking at $116 in April.
Russian Urals crude oil has fallen back to levels seen before the Middle East war, according to Bloomberg. In the first three days of July, Urals averaged $41.66 a barrel at Russia’s western ports.
Since March, the monthly average price of Urals had exceeded the $59-per-barrel figure built into Russia’s federal budget. In June, after the United States and Iran reached an agreement to resume shipping through the Strait of Hormuz, Russian oil averaged $60.92 a barrel.
The surge in oil revenues after the Middle East war broke out allowed Russia to replenish its reserve fund for the first time in nearly a year and postpone spending cuts, Bloomberg reported. However, if Urals remains below $59 for an extended period, the Kremlin will find it harder to contain the country’s growing budget deficit.
In early April, amid the war and the closure of the Strait of Hormuz, the price of Russian Urals crude at the Baltic port of Primorsk reached $116.05 a barrel — the highest since 2013. By May 2026, it had fallen to $85–86 a barrel.
