Trump Sanctions Russian Oil Firms as Global Oil Rises 3.7%
Trump Sanctions Russian Oil Firms as Global Oil Rises 3.7%
Sanctions on Rosneft and Lukoil push Brent toward $65 as markets react to renewed pressure over Ukraine and stalled diplomacy.
Global markets reacted as the Trump administration, via the Treasury’s Office of Foreign Assets Control, announced new sanctions targeting Russia’s two largest oil firms, Rosneft and Lukoil, accusing them of funding the Kremlin’s war machine.
Brent crude futures jumped more than 3.7% to nearly $65 per barrel, while U.S. West Texas Intermediate climbed about 3.9% to $60.76 per barrel, as traders priced in the impact of the sanctions and ongoing conflict in Ukraine.
EU officials confirmed a fresh package of sanctions that includes a ban on Russian liquefied natural gas imports, compounding pressure on Moscow and adding momentum to the energy-price rally.
Treasury Secretary Scott Bessent said the sanctions are part of a broader effort to end the war and warned there will be further action if necessary. The move follows a round of penalties already imposed by Britain and European Union partners.
Separately, the talk of diplomacy continued as Trump canceled a planned summit with Russian President Vladimir Putin, citing stalled negotiations, even as he signaled a push to get China involved. He noted a targeted trip to Malaysia, South Korea, and Japan, with plans for a meeting with Chinese President Xi Jinping, hoping Xi could influence Putin toward ending the conflict.
With the energy markets roiled, analysts warn that the ripple effects could reach consumers and industries worldwide, underscoring how sanctions and geopolitics remain tightly linked to oil prices.
Cover image source: Trump says he canceled Putin summit due to stalled negotiations 🔗
