Ukraine attacks Russia's oil as the Iran war raises energy prices

Key Points:

• Ukrainian drones have conducted deep strikes on Russian oil facilities, including refineries and export terminals up to 1,500 kilometers inside Russia, causing fires, evacuations, and environmental damage such as toxic "black rain" on the Black Sea coast.
• The attacks aim to reduce Moscow’s oil exports, a major funding source for its invasion of Ukraine, with President Zelenskyy claiming Russia has lost at least $7 billion this year due to these strikes, although the full economic impact remains uncertain amid rising global oil prices.
• Despite spectacular fires from hits on oil tanks, experts say the damage to infrastructure is limited since critical components like pump stations and compressors are better protected, resulting in only short delays in oil deliveries.
• Ukraine’s enhanced drone capabilities have more than doubled their strike range since 2022, pressuring Russia’s air defenses and bringing the war’s consequences closer to ordinary Russians far from the front lines.
• The environmental fallout from the attacks has raised concerns about long-term health and ecological effects in affected regions, with local officials warning of carcinogenic pollution and residents reporting oily rain and wildlife contamination, though public dissent remains suppressed.