Oil prices surge over 5% after US sanctions Russian oil majors

Oil prices surged after the United States announced sanctions on Russian oil majors Rosneft and Lukoil. The global benchmark Brent crude futures jumped more than 5% to $65.99 a barrel, while U.S. West Texas Intermediate (WTI) rose 5.6% to $61.79 on Thursday. Although early trading on Friday showed a slight dip, both benchmarks are on track for a 7% weekly gain—the largest since early June.

The White House described the sanctions as a step toward encouraging Moscow to agree to a ceasefire. Russia, while remaining open to diplomacy, insists that any peace deal must address the conflict’s root causes. Russian officials have accused Kyiv and its Western backers of refusing to negotiate in good faith and of undermining peace efforts through sanctions.

The sanctions have prompted Chinese state oil majors to pause short‑term purchases of Russian seaborne crude, according to media reports citing trade sources. Industry insiders also warned that refiners in India—the largest buyer of Russian seaborne oil—and Turkey, the third‑largest buyer, could reduce imports in the coming weeks. Janiv Shah, vice president of oil markets analysis at Rystad Energy, noted that “flows to India are at risk in particular… challenges to Chinese refiners would be more muted, considering the diversification of crude sources and stock availability.” The measures are expected to create a ripple effect as buyers of Russian crude seek alternatives until enforcement clarity emerges.

Richard Bronze, head of geopolitics at Energy Aspects, predicted that Brent could approach $70 a barrel in the coming days, stating that “just the decision to make this announcement is going to send quite a shock wave through the market.” Russian President Vladimir Putin called the new sanctions an “unfriendly move” but said they would not significantly impact Russia’s economy. He emphasized that the sanctions are another attempt by Washington to pressure Moscow, adding that “no self‑respecting country ever does anything under pressure.” The development is likely to have significant implications for the global oil market and diplomatic relations between Russia and the West.