Is Russia’s economy cracking despite the Iran war windfall?

What the report says

Al Jazeera reports that Russia’s economy is under growing pressure even as it benefits from higher energy prices linked to the war in the Middle East. The video says the strain comes from a widening budget deficit, slower growth and Ukrainian strikes that are hitting deeper into the economy. It places the situation in the broader context of nearly four years of Russia’s war in Ukraine and the continued impact of Western sanctions.

According to the report, Russia has so far proved more resilient than many expected, helped by substantial accessible reserves of more than $300 billion. But the outlook is weakening, with growth forecast to slow to its weakest pace since 2022. The piece frames this as a test of how long Moscow can keep supporting wartime spending while absorbing external shocks.

The article also notes a temporary boost from the war in Iran, which has pushed up energy prices and increased Moscow’s revenue. At the same time, the United States is trying to limit that gain: the US Senate has backed tariffs of up to 100% on buyers of Russian energy. The development matters because Russia’s energy exports remain central to its fiscal stability and to its ability to weather sanctions.