Washington: Oil prices surged nearly 3% on Wednesday after the Trump administration imposed new sanctions on Russia’s two largest crude producers, Rosneft and Lukoil, citing Moscow’s “lack of serious commitment” to ending the war in Ukraine.
Global benchmark Brent crude rose $1.83, or 2.9%, to $64.42 per barrel, while U.S. West Texas Intermediate (WTI) climbed $1.74, or 3%, to $60.24 in evening trade. Both contracts had already gained about 2% earlier in the session.
“Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war,” Treasury Secretary Scott Bessent said in a statement. He urged allies to join the sanctions aimed at curbing the Kremlin’s war revenue.
A senior U.S. official told NBC News the sanctions followed the collapse of a planned meeting between President Trump and Vladimir Putin in Budapest, adding that Washington continues to pressure India to scale back purchases of Russian oil.
The sanctions are expected to tighten Russia’s export capacity just as OPEC+, led by Saudi Arabia and Russia, has been boosting production.
Despite Wednesday’s rebound, U.S. crude is down 16% and Brent nearly 14% for the year amid trade tensions and slowing global growth linked to new tariff measures.
