The Financial Consequences from Russia-Ukraine War

Russia’s oil reserves are worth 1.2 trillion dollars and they represent 72% country’s gross domestic product (the cost per production of barrel is $15.5/barrel). Russia has been exporting around 7 million barrels of oil and refined products, representing 7% of the global supply, and to the European Union, Russia provides 40% of natural gas.
Since the sanctions imposed by the United States, brent oil rose $139.13/barrel, West Texas Intermediate crude rose $130.50/barrel. Analysts from JP Morgan stated the oil cost per barrel could rise up to $185 this week. While analysts at Bank of America are saying that the cost per barrel could go up to $200. How long do you think the people will cheer the government for sanctioning Russia when they realize that they will be paying $5/gallon?
And it gets even better. On January 3rd, 2020, the U.S. government assassinated the Iranian hero, Major General Qasem Soleimani as he was crossing the Syrian border. Rumors were that Soleimani was on a mission to broker peace between Iran and Saudi Arabia. Israel had the United States government interfere by killing the general causing a national outrage in Iran. And since the U.S. is banning Russian gas, the government find itself negotiating the nuclear deal, once more with Iran.