Oil prices surged by approximately 3% on Wednesday evening following the Trump administration’s introduction of additional sanctions against Russia’s two foremost crude producers, pointing to Moscow’s “insufficient commitment to a peace resolution to conclude the war in Ukraine.”
The global benchmark Brent increased by $1.83, 2.92%, reaching $64.42 per barrel by 8:18 p.m. ET. Meanwhile, U.S crude oil saw a rise of $1.74, or 2.97%, to $60.24 per barrel. During standard trading on Wednesday, Brent advanced by 2% to close at $62.59 per barrel, while U.S. crude rose 2.2% to settle at $58.50.
“It is imperative to halt the violence and establish an urgent ceasefire,” stated Treasury Secretary Scott Bessent as he unveiled the sanctions on Rosneft and Lukoil.
“The Treasury is ready to take further measures if deemed necessary to support President Trump’s initiative to conclude yet another conflict,” Bessent mentioned. “We urge our allies to align with us and comply with these sanctions.”
The Treasury Department indicated that the new sanctions would impede the Kremlin’s capability to generate revenue for its war efforts against Ukraine.
A senior White House official informed NBC News that the new sanctions are linked to a failed meeting planned between President Donald Trump and Russian leader Vladimir Putin in Budapest.
Additionally, Trump has been pressuring India to cease its purchases of Russian oil, with New Delhi being one of the largest buyers of Russian crude exports.
U.S. crude oil prices have decreased by 16% this year, while Brent has declined by nearly 14%. OPEC+, led by Saudi Arabia and Russia, has been augmenting production for several months.
Trade tensions stemming from Trump’s tariffs have also heightened concerns within the oil market that economic growth may decelerate, adversely affecting crude demand.
