Rachel is downright giddy and gleeful tonight.

[Strelnikov_]

19. It is about oil prices and exports

Russia is the worlds 2nd largest oil exporter. Outside of the Middle East, there really are not any other major exporters.

Also, Iran does not have that much petroleum left. The British worked it over good the 1st half of the 20th century. I think their major reserves are natural gas, something Russia has a hell of a lot of already (Ukraine<>pipeline access to Europe).

Oil prices go up, Russia makes more on exports. Middle East exports are disrupted, Russia makes lots more on exports.

And it is the countries with export capacity that matter. A relatively small disruption in the export market, dominated by the Middle East, will result in a major price increase. An essential, price inelastic (over the short run) commodity.