Oil Prices Soar 5% Following New Sanctions on Russia
Oil prices witnessed a significant surge of approximately 5% last Thursday following the imposition of additional sanctions by the Trump administration on Russia’s two largest oil companies, Rosneft and Lukoil. The global benchmark Brent crude climbed $3.06 to reach $65.65 per barrel, while U.S. crude oil ascended by $3.10, settling at $61.60 per barrel.
Treasury Secretary Scott Bessent justified the new sanctions, citing “Russia’s lack of serious commitment to a peace process to end the war in Ukraine”. These measures were introduced after President Trump expressed his reluctance to “have a wasted meeting” with Russian President Vladimir Putin, thereby casting a shadow of doubt over the planned diplomatic talks.
The sanctions signify an escalation in the U.S.-Russia energy standoff. Bessent stated that “now is the time to stop the killing and for an immediate ceasefire.” The Treasury further indicated its readiness to take additional action if deemed necessary. This adds a layer of uncertainty to the global energy markets that are already grappling with supply chain concerns.
Source: CNBC